Innovation and new players jumping over from the traditional mutual fund space have quickly helped the ETF universe expand to where it is now today.
“It’s just the expansion of ETFs, number of types of ETFs,” Ed Rosenberg, Senior Vice President and Head of ETFs at American Century, said at the 2018 Morningstar Investment Conference. “They’re getting more and more similar to what usual funds do. As soon as non-transparent active comes into play, then you have every set of structure in a sense of ETFs that what mutual funds can do today.”
American Century was also among the latest group of money managers that turned into ETF providers. American Century Investments branched away from its six-decade history of managing traditional open-end mutual funds after launching the American Century STOXX U.S. Quality Value ETF (NYSEArca: VALQ) and American Century Diversified Corporate Bond ETF (NYSEArca: KORP).