Consequently, Muzerall argues that the influx of competition could spark greater fee competition.
Cerulli found that smart or strategic beta offerings were among the most popular areas, with over half of ETF sponsors surveyed stating they had such funds in the works and another quarter of respondents planning to develop their own offerings.
Nevertheless, it will take time for these newer strategies to accumulated wider acceptance. Specifically, larger investors may wait for these funds to show a more predictable track record. [Smart Beta ETFs Grow, Gain Naysayers]
“Investors are waiting for these strategies to season, not unlike the process of selecting active managers,” Ben Johnson, global head of passive fund research at Morningstar, said in the article.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.