Active strategies in the ETF space have been pushed to the side as trillions of dollars followed into passive, index-based ETFs instead. However, as we head toward an extended bull market, active pickers may have their moment to shine and begin attracting more investment interest.
“I think we’re gong to crack it open,” Nadig said. “I think we’re going to see a lot more equity, too.”
Given the broad reach of the ETF industry, fund providers seeking to add new strategies to market are increasingly becoming thematic in their approach as a way to separate themselves from the competition.
“I think some of them will stick,” Nadig said. “Some of these may stick, some of them may not. I think they’re really useful tools for investors – really for speculators who want to maybe play a crazy Trump tweet. I think there’s value in having these in the market.”