The space is still relatively new. A group of ETF managed portfolios tracked by Morningstar now include 645 strategies from 145 firms, with $80 billion in assets under management as of of June 2013.
“It’s still very much the wild wild west,” Johnson said. “If you look at the data that is available and hold that up against the data that’s available for ETFs or traditional mutual funds, if you look at the standards, and even back office, basic infrastructure that’s required or exists for some of these places, investors almost have to turn due diligence back on its head when they are assessing some of these strategies.”
Watch the video below to see the full interview with Ben Johnson and Matthew Hougan.
To view past video interviews, visit our video section.