ETF managed portfolios are a quickly growing part of the separate accounts space. Fueling demand for ETF managed portfolios, clients are actively asking multi-asset managers to increase ETF allocations in their portfolios. Managers are also expanding their investment base with ETFs to meet specific goals. More active managers are also adopting ETFs due to the many benefits of the investment vehicle, such as low fees, deep liquidity, tax efficiency and as replacements for futures and to access broad asset classes.[related_stories]
ETF managed portfolios are investment strategies that hold more than 50% of assets invested in ETFs and managed by ETF strategists. 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.
According to Morningstar data, there were 755 strategist from 154 firms with $73 billion in assets under management through December 2015.
Financial advisors whoa re interested in learning more about ETF strategists’ fixed-income strategies can register for the Wednesday, April 6 webcast here.