Actively managed exchange traded funds (ETFs) have seen significant growth in the number of products offered and assets under management over the past year and continue to gain popularity as an investment vehicle, says an SEI paper. ‘Active ETFs: Revisited’ notes that the active ETF market has grown by nearly 30 products and more than $2.5 billion assets under management in the past 12 months. This upward trend further demonstrates the attractiveness of active ETFs to both financial advisors and investors due to their lower costs, increased transparency and liquidity, and potential tax efficiency when compared to mutual funds. The paper shows this development has been taking shape for the past six years. Since 2008, active ETF assets have comprised seven per cent of all ETF assets under management in the U.S. Additionally, with more than 50 active ETFs either in registration or, if already approved, waiting to come to market, there is no noticeable slowdown in this expansion.
245 Fairview Mall Drive, Suite 501, Toronto, ON M2J 4T1