“It’s a way for advisers to outsource portfolio management and get institutional-type diversification,” Hew added.
As of the end of the second quarter, there were 667 strategies from 145 firms with $102 billion in assets under management. The largest strategy is the Windhaven Diversified Growth portfolio with $10.1 billion in assets. Other large strategies include the F-Squared Premium AlphaSector Index portfolio with $8.0 billion, the $6.0 billion Windhaven Diversified Aggressive portfolio and $2.9 billion Windhaven Diversified Conservative portfolio.
F-Squared Investments is the largest provider with $25.6 billion in assets under management, followed by Windhaven Investment Management with $19.0 billion.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.