In early 2016, the strategist fee charged will be removed on all the LPL Research models in MWP, or a 15 to 20 basis point cost reduction. Moreover, the firm said the IRA maintenance fee will also be removed.
According to Morningstar data, there are 700 managed ETF portfolio strategies from 151 firms with $86 billion in total asset under management as of March 2015.
As of the end of the first quarter, Cougar Global Investments Limited had 4 strategies with $1.7 billion in AUM and Quantitative Advantage had 11 strategies with $876.6 million in AUM.
ETF managed portfolios are investment strategies that hold more than 50% of assets invested in ETFs and represent one of the fastest growing segments in the separate accounts space. Specifically, ETF managed portfolios offer three major investment themes: tactical, strategic and hybrid mix. The tactical offerings provide short-term plays to capitalize on investment opportunities that are forming, whereas the strategic play provides long-term allocation across sectors and asset classes. Additionally, the hybrid mix includes a combination of tactical and strategic elements.
The managed ETF portfolios are closely monitored by ETF strategists who actively buy and sell ETFs to maximize returns and minimize risk in the portfolios. The strategists also help advisors navigate the ETF landscape, provide investment analysis and advise on portfolio construction, asset allocation and tax structures.