Less than five years after their debut, actively managed exchange traded-funds – whether rules-based or selected by actual human beings – are still a bit player in the overall ETF universe, accounting for roughly $5.2 billion in assets at the end of 2011 according to AdvisorShares, a leading-sponsor of actively-managed ETFs and one of the first firms to apply for exemptive relief status with the SEC.
That’s a drop in the bucket compared to their index-based ETF brethren which hold more than $1.05 trillion in investor assets.
But actively managed ETFs are on the come. AdvisorShares currently offers 13 actively-managed ETFs via the NYSE Arca. And in February, PIMCO launched its Total Return Exchange-Traded Fund (TRXT), just the latest sure sign that these funds are starting to come of age.
Here’s an interactive slide show detailing five important facts every financial advisor needs to know about actively managed ETFs.