Exchange traded fund managed portfolios, one of the fastest growing segments of the managed-account space, witnessed a strong start to the year as more advisors and institutional investors utilize the easy-to-use, low-cost investment strategies for client portfolios.
ETF managed portfolios tracked by Morningstar now holds 605 strategies spread across 140 firms, with $73 billion in assets, a 12% growth in the first quarter, reports Andrew Gogerty, ETF Managed Portfolios Strategist, for Morningstar. [ETF Managed Portfolios Branch Out from Retail to Institutional]
“Many advisors are turning to one or more of these strategies as an outsourced or complete portfolio solution for clients,” Goerty said in a report.
This new bred of managed accounts are investment strategies that typically hold more than 50% of portfolio assets invested in ETFs. ETF managed portfolios are being utilized as both stand-alone investment strategies and a complete, one-stop offerings. [ETF Managed Portfolios: Disruptive Innovation and Mutual Funds]
Currently, global all-asset strategies make up $26 billion in assets, and the popular U.S.-focused strategies and equity offerings account for $31 billion in assets. Nevertheless, smaller strategies are gaining traction as platforms diversify product offerings. [ETF Managed Portfolios See Steady Growth]
The largest ETF managed portfolio providers include Windhaven Investment Management with $15.6 million in assets, F-Squared Investments $11.5 million, Good Harbor Financial $5.1 million, Innealta capital $4.2 million and Morningstar $3.8 million.
Over the past year, the top performing ETF managed portfolio strategies include on average U.S. equities 12.2%, global equities up 10.2% and U.S. all-assets 10.1%.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.