Advisory firms manage all-ETF portfolios for some investors, but the catch is relatively high account minimums. As more individual investors show interest in ETFs, the higher account minimums are not suitable. In turn, some of the larger advisory firms are lowering account minimums to help target a bigger investor pool. The two Global X/JP Morgan ETFs, though somewhat pricey by ETF standards, give investors a cost-effective avenue for accessing ETF managed portfolio strategies. [A Look at ETF Managed Portfolios]
“At the end of the second quarter, strategies in Morningstar’s database had collective assets under management (AUM) or assets under advisement (AUA) of $102 billion,” according to Morningstar.
Like the ETF business at large, the manage portfolios landscape is dominated by three players – F-Squared Investments, Good Harbor Financial and Charles Schwab’s (NYSE: SCHW) Windhaven Investment Management.
Global X has nearly $3.8 billion in assets under management. J.P. Morgan launched its first ETF earlier this year, the JPMorgan Diversified Return Global Equity ETF (NYSEArca: JPGE).
ETF Trends editorial team contributed to this post.