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PSR

Although ETFs and mutual funds seem in many ways to be natural rivals, one of the most closely-watched trends in the “active vs. passive” debate has been the development of a hybrid type of investment option: actively-managed ETFs. While the space has mostly taken “baby steps” to this point, it appears to be poised for explosive growth in the coming months. [click to continue…]

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Actively-Managed ETFs: A Gamechanger?

by on May 5, 2009 | Updated May 14, 2009

Had Jerry Seinfeld pursued a career in finance, I imagine he’d be having a field day around the water cooler with the launch of the Grail American Beacon Large Cap Value ETF (GVT) yesterday:  “What’s the deal with actively managed ETFs…isn’t the whole point of an ETF that is isn’t actively managed?” Since one of the primary benefits of ETFs is the reduced cost structure that they are able to offer as a result of lower asset turnover and overhead, an actively-managed ETF would appear initially to contradict itself. In reality, however, actively-managed ETFs may offer many of the same benefits as indexed ETFs while also allowing investors to attempt to beat the market. [click to continue…]

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