Today we stick with the theme of Actively Managed ETFs, as there is notable interest and activity in the space especially, recently.
For example, HYLD (Peritus High Yield, Expense Ratio 1.25%) just vaulted over $1 billion in assets under management for the first time last Friday, making it the third largest actively managed ETF in the U.S. landscape, behind BOND (PIMCO Total Return, Expense Ratio 0.55%) and MINT (PIMCO Enhanced Short Maturity Strategy, Expense Ratio 0.35%).
In what does not look like a coincidence, the top six funds in the “active” space are all classified in the broader Fixed Income category, and manager expertise is clearly valued in this arena, making it an area of huge opportunity in years to come.
HYLD debuted in 2010, and has rather efficiently overcome initial objections about “average daily trading volume” and “spreads” to grow to its current size.
Secondarily, we have seen some other fast risers in the active space, in EMLP (First Trust North American Energy Infrastructure, Expense Ratio 0.95%) for example, which recently has grown to north of $600 million in
under two years since inception, as well as ELD (Wisdom Tree Emerging Markets Local Debt, Expense Ratio 0.55%) which is within shouting distance of $1 billion in assets under management at the moment (with approximately $905 million in AUM).