The rise of managed portfolios of exchange traded funds is expected to be a major driver of the growth of the ETF business in coming years.
“Financial advisors increasingly are outsourcing some of their client assets to these managers so that they can spend more time on clients and less time managing portfolios,” InvestmentNews reports.
“As the ETF landscape has gotten more complicated, not all advisors feel comfortable building their own portfolios,” said Sue Thompson, head of iShares’ RIA Group, in the article. “Advisors have to either be the expert or find one.”
Private equity firms considering potential investments in companies that oversee ETF managed portfolios is another sign of the growth potential of the business. [ETF Managed Portfolio Firms Attract Private Equity Interest]
Assets in model ETF portfolios tracked by Morningstar grew to $46 billion by the end of the first quarter, up 43% from a year earlier, according to the InvestmentNews report. [I’ve Seen the Future of ETFs]
BlackRock’s iShares estimates that the sector could grow to $120 billion in ETF assets by 2015. [Growing Demand for ETF Managed Portfolios]
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.