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.

Source: AdvisorShares

Also see:

10 Global Investment Predictions for Advisors, Investors

Advisors’ 7 Best Investment Ideas This Election Year

The Five Biggest Threats To Your Clients’ Retirement Nest Eggs

 

 

 

 

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access