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Advisors Like ETF Managed Portfolios for Low Costs, Diversification


ETF Trends Editor Tom Lydon speaks with Andy Gogerty, ETF Managed Portfolio Strategist at Morningstar, in the video below about why more financial advisors are building portfolios exclusively with exchange traded funds. Meanwhile, other advisors and institutions are using outside ETF managed portfolios for their clients.

“They want low-cost, broad-based asset diversification,” Gogerty says.

In the ETF managed portfolio space, there were 500 strategies through June with 48% asset growth and $50 billion in assets. Yet the industry’s growth is just getting started, he tells Lydon.

The business is “a market phenomenon that Morningstar has recognized,” Gogerty said. “From an education perspective, we think we can add a lot of value.”

He explains how portfolio managers are expressing asset allocation views in separate accounts using ETFs instead of individual securities.

Small firms are building ETF managed portfolios for their own clients as well as for other advisors who want to spend more time on financial planning with individuals they work with.

Watch the video to see the full interview.

The opinions and forecasts expressed herein are solely those of John Spence, 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.