With these big-name brands essentially legitimizing this 0.5% corner of the $1.2 trillion ETF industry, this can only reinforce the smaller players already in the space. [Tom Lydon, Chuck Jaffe Talk ETF of the Week: PIMCO Total Return]
The actively managed ETF market has about $5.8 billion in assets under management, according to ETF Industry Association data. Of the 47 actively managed ETFs on the market today, 29 have been introduced since 2010. [ETF Chart of the Day: PIMCo Total Return]
This space will get bigger, but the growth is largely dependent on how well managers can maintain alpha. Managers will still have to justify their higher costs.
Tisha Guerrero contributed to this article.