As more investors shift assets into exchange traded funds, active managers are crafting their own ETF strategies to get a slice of the growing demand.
Active money managers are launching their own ETFs as demand from institutional investors, retail investors and financial advisors grow. For instance, T. Rowe Price Group, Legg Mason, Principal Globlal Investors and Goldman Sachs Asset Management have all filed with the Securities and Exchange Commission to launch ETFs, reports James Comtois for Pension & Investments.
Additionally, other firms, like New York Life Investment Management and Janus Capital Group, have acquired smaller ETF shops to get a footing in the industry.
With demand for ETF strategies on the rise, more money managers are thinking about launching their own ETF strategies as an easier way to grow assets under management. For those who are thinking about launching their own ETFs, the second annual ETF Boot Camp in New York next month may provide insights into entering the ETF business. [Financial Advisor ETF Usage on the Rise]
“ETF usage overall is definitely being driven in large part by institutions,” Justin R. White, a partner with money manager consultant Casey, Quirk & Associates LLC, told Pensions & Investments. “Many are using them to gain exposure in places they haven’t been exposed to before.”
Macrae Sykes, an analyst at Gabelli & Co. Inc., pointed out that increased interest for liquidity, smart beta and customized strategies are among the top reasons that have attracted institutional interest.