Consequently, more traditional open-end fund managers are stepping into the ETF business. For instance, David Advisors launched the Davis Select U.S. Equity ETF (NasdaqGM: DUSA), Davis Select Financial ETF (NasdaqGM: DFNL), and Davis Select Worldwide ETF (NasdaqGM: DWLD). DUSA is managed by Christopher Davis and Danton Goei, a portfolio manager for the Davis Large Cap Value Portfolios and a member of the research team. Davis also manages DFNL while Goei manages DWLD.

“It’s really filling a need that’s been unmet in the marketplace, and that’s true, time-tested active management in a traditional ETF structure,” Kittsley added.

While the U.S.-listed ETF industry has ballooned to $3.4 trillion in assets under management with over 2,100 products listed on the market, there are only 205 actively managed ETFs with $45.7 billion in assets under management, according to XTF data, which leaves a lot of room for further growth.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.