Returns of Active Bond Funds Stand Above Active Equity Funds

Finally, we’d like to note that the same arguments that support actively managed fixed income also support actively managed alternative investing. Alternatives by their very definition offer unique and innovative strategies in newer financial markets that are less heavily researched and less liquid. Nimble and efficient trading, a lack of transparency — which enables managers to hide their trades somewhat — and the ability to harvest liquidity premia are strong arguments for the mutual fund structure within alternatives. Alternative ETFs are much less able to harvest these sources of return, as they must be transparent and liquid enough to liquidate at any time due to their structure.

Mason Wev, CFA, CMT is a Portfolio Manager at Clark Capital Management Group, a participant in the ETF Strategist Channel.

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Clark Capital Management Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Clark Capital’s advisory services can be found in its Form ADV, which is available upon request.Past performance is not indicative of future results. The opinions expressed are those of the Clark Capital Management Investment Team and are subject to change without notice. The opinions referenced are as of the date of publication and may not necessarily come to pass. This material is not financial advice or an offer to buy or sell any product. Clark Capital reserves the right to modify its current investment strategies based on changing market dynamics or client needs. The material in this report has been derived from sources considered to be reliable, but Clark Capital cannot guarantee its completeness or accuracy.