Envestnet Debuts 4 New “ActivePassive” ETFs | ETF Trends

Envestnet PMC has launched a series of ETFs designed to feature benefits of both traditional active and low-cost passive investments. The four ETFs — the ActivePassive U.S. Equity ETF (NYSE Arca: APUE), the ActivePassive International Equity ETF (NYSE Arca: APIE), the ActivePassive Core Bond ETF (NYSE Arca: APCB), and the ActivePassive Intermediate Municipal Bond ETF (NYSE Arca: APMU) — are listed on the New York Stock Exchange.

These Envestnet “ActivePassive” ETFs consist of passive and factor-based exposures managed by Envestnet. Also the ETFs include active exposures managed by third-party investment managers and vetted by PMC’s research team.

Dana D’Auria, co-chief investment officer and group president of Envestnet Solutions, told VettaFi in an interview that Envestnet’s branded ActivePassive investment philosophy uses the “best of both worlds” from both active and passive investment management styles.

See more: “Envestnet’s Dana D’Auria Talks New ETFs and the Benefits of Combining Active With Passive

“Our view is that there’s opportunity for both active and passive management within an investor’s portfolio,” D’Auria said. “Passive is giving you market beta. That said, if you go with indexing alone, you are ignoring decades of research that says there’s the ability to outperform the benchmark.”

Inside The ActivePassive Strategy

The ETFs have been launched to offer Envestnet PMC’s ActivePassive strategy in a tax-efficient way with no additional management fee. Greg Classen, principal director of portfolio management at Envestnet PMC, and Tim Murphy, director of portfolio management at PMC, have led the management of the ActivePassive PMC Portfolios since 2014.

Brooks Friederich, principal director of research strategy at Envestnet PMC, said in a statement that the launch of these ActivePassive ETFs gives the company “the opportunity to harness” the “best asset management and research resources within PMC and across the Envestnet ecosystem for the benefit of advisors and their clients.”

Added Friederich: “Our ActivePassive portfolios and ETF wrapper options simplify the blending of active and passive investments for advisors, aimed at allowing them to devote more time to revenue-producing activities and helping to improve outcomes for their clients.”

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