Though growing, actively managed exchange traded funds remain a small part of the ETF business. Active ETFs accounted for $20.38 billion in assets under management as of June 5, up from $20 billion a few weeks prior.
A new upstart issuer is helping drive actively managed ETF growth. New Jersey-based WBI Investments introduced its lineup of 10 active ETFs just 10 months, immediately racing to the $1 billion in assets under management mark. The company ended May with $1.5 billion in combined active ETF assets with all 10 of its funds residing north of the $100 million in AUM level. [Another Good Year for new ETFs]
Only PIMCO, First Trust, WisdomTree, StateStreet and iShares have more actively managed ETF assets under management than WBI.
“With market valuations at historical highs, it’s natural for investors to be thinking about the next correction,” said Matt Schreiber, president of WBI, in a statement. “Our actively managed ETFs offer investors a way to protect their capital in bear market cycles while still participating in a good portion of bull markets.”
Home to $304.3 million in assets as of June 11, the WBI Tactical Income Shares (NYSEArca: WBII) is WBI’s largest ETF. WBII has benefited from being at the right place at the right time, coming to market amid a surge in volatility that sent investors flocking to low volatility strategies. WBII provides “provides low volatility, low correlation and an optimal blend of bear market capital preservation and bull market return,” according to WBI Shares.