While actively managed exchange traded funds still represent just a sliver of the broader exchange traded products industry, active offerings are on a positive growth trajectory.
As of the end of June, there were 89 U.S.-listed actively managed ETFs with a combined $16.3 billion in assets under management, according to AdvisorShares data. Maryland-based AdvisorShares is one of the largest issuers of actively managed ETFs with 25 such offerings.
The number of actively managed ETFs trading in the U.S. is now above 90 with the recent introduction of the 25th AdvisorShares ETF, the AdvisorShares Sunrise Multi-Strategy ETF (NasdaqGM: MULT). MULT debuted last week. [AdvisorShares Debuts Multi-Strategy ETF]
On Monday, mutual fund issuer Calamos Investments entered the ETF arena for the first time with a new active equity offering, the Calamos Focus Growth ETF (NasdaqGM: CFGE).
The Calamos Focus Growth ETF is the ETF answer to the firm’s Calamos Focus Growth Mutual Fund (CBCAX), which is nearly 11 years old and has almost $74 million in assets under management. Introducing an ETF version of an already established mutual fund could prove to be a shrewd move on the part of Calamos. Over the past year, the Calamost Focus Growth Mutual Fund has returned 30.1%, easily topping the S&P 500 and Russell 1000 in the process. [Calamos Enters ETF Arena]
With $3.8 billion in assets under management, the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT) is the largest actively managed ETF followed by the PIMCO Total Return ETF (NYSEArca: BOND), but other active funds are showing promising growth traits as well.
For example, the AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD) has nearly $1.1 billion in assets under management after reaching the $1 billion milestone in May. The TrimTabs Float Shrink ETF (NYSEArca: TTFS) reached $100 million in AUM in January and has seen its assets grow nearly 43%. [Behind the Scene With the Float Shrink ETF]
PIMCO had $7.87 billion in active ETF assets at the end of June while WisdomTree (NasdaqGS: WETF) and AdvisorShares each had north of $1.9 billion, according to AdvisorShares data. With $5.3 billion across 10 funds at the end of June, short-term bonds were the leading asset class represented by actively managed ETFs.
Increased demand for the products and the potential for a more favorable regulatory environment could make actively managed ETFs a $500 billion asset class by 2020, according to a new report by SEI Investments.
More than 20 actively managed ETFs have been launched just this year, which is already ahead of last year’s total and more than double the amount brought to market in 2009, according to AdvisorShares data.
TrimTabs Float Shrink ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of BOND, HYLD and TTFS.
The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.