As managers focused on active management continue to roll out active ETF suites, financial advisors are becoming more inclined to not only enlist the service of active managers, but to enlist said services through the ETF wrapper.
A survey of 125 advisors conducted by Ignites Research between July 7 and July 15 found that 66% of respondents are more inclined to consider an active manager now than before. Among advisors considering active managers, 65% would considering employing ETFs when choosing active strategies. Broken down by channel, 58% of insurance channel respondents considering active managers said they would consider ETFs, while 68% of RIA respondents said they would turn to ETF options.
Newer advisors are also more likely to consider active managers than more seasoned FAs, with 100% of respondents with less than five years’ experience saying they would consider actively managed ETFs. By comparison, of the respondents with more than 20 years of experience, only 58% said they would likely look at actively managed ETFs.
“In the last five years, the ETF industry has moved from one dominated solely by index-based products to one that includes a range of active ETFs from well-established asset managers,” said Todd Rosenbluth, head of research at VettaFi. “Younger advisors that believe in active management can find many active equity and fixed income funds from firms they respect.”
For investors looking to add active management to their portfolios, T. Rowe Price offers a suite of actively managed equity ETFs, including the T. Rowe Price Blue Chip Growth ETF (TCHP), the T. Rowe Price Dividend Growth ETF (TDVG), the T. Rowe Price Equity Income ETF (TEQI), the T. Rowe Price Growth Stock ETF (TGRW), and the T. Rowe Price U.S. Equity Research ETF (TSPA).
T. Rowe Price has been in the investing business for over 80 years through conducting field research firsthand with companies, utilizing risk management, and employing a bevy of experienced portfolio managers carrying an average of 22 years of experience.
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