The upstart exchange traded fund industry is pushing into the separate accounts space, with more advisors and institutional investors turning to the easy-to-use, low-cost ETF managed portfolio strategies for clients.
ETF managed portfolios tracked by Morningstar now include 645 strategies from 145 firms, with $80 billion in assets under management as of of June 2013, representing 18% growth year-to-date and 46% growth year-over-year, writes Andrew Gogerty, ETF Managed Portfolios Strategist, for Morningstar.
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]
Global strategies take up the lion’s share of the space, accounting for 64% of industry assets. Global all-asset strategies make up $29 billion and continue to attract advisors and institutional interest.
Equity managed portfolios remain the largest asset breadth group, holding $33 billion in assets.
The largest ETF managed portfolio providers include Windhaven Investment Management with $17.4 million in assets, F-Squared Investments $13.5 million, Good Harbor Financial $5.5 million, Innealta capital $4.1 million and Morningstar $3.9 million.
In the first six months, the best performing ETF managed portfolio strategies include U.S. equities up 11.0%, global equities up 5.7% and U.S. all asset up 4.3%.
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.