Morningstar will begin ranking and researching managed ETF portfolios by the end of the year, the research firm announced at its second annual ETF Invest Conference in Chicago Thursday.
ETF managed portfolios have more than 50% of their assets in exchange-traded funds. Morningstar currently tracks more than 330 ETF managed portfolios with $22 billion in assets. Nearly one-third of these funds were launched in the past three years, and the number continues to increase.
“ETF managed portfolios are a burgeoning area,” said Andrew Gogerty, ETF managed portfolios strategist at Morningstar. “By expanding the research available for ETF managed portfolios, we aim to increase the awareness and transparency of this rapidly growing area of the industry. These strategies typically offer greater tactical flexibility than a traditional individual security separate account strategy, but no other firm is providing commentary, research and education for advisers in this area.”