As of the end of the second quarter, there were 787 strategies from 151 firms with $84 billion in assets under management, an 11% increase in assets from the first quarter, according to Morningstar.
The ETF managed portfolios space saw $5.1 billion in quarter-over-quarter growth, marking the second consecutive quarter of growth.
ETF managed portfolios are investment strategies that hold more than 50% of assets invested in ETFs and represented 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 negative effects of ongoing outflows from strategies managed by some of the largest operators in the space were more than offset by their peers’ gains as well as by the addition of new strategies to our database,” Ben Johnson, director of global ETF research for Morningstar, said in a note.