Exchange traded funds continue to gain in popularity with both retail and institutional investors but actively managed ETFs represent only a tiny fraction of the more than $1.1 trillion in assets trading in U.S. ETFs.

But that number figures to rise, according to S&P equity analyst Tom Graves, as investors look for more creative and aggressive ways to diversify their portfolios and take advantage of underpriced or overpriced stocks and funds that they otherwise might not be able to access.

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