Mike Consol’s Post

ARTICLE: The recent surge in active ETF launches comes for a variety of likely reasons. First is the ability to launch active ETFs more easily and create custom creation/redemption baskets due to updated regulations in recent years. Additionally, the asset-gathering success of several large active ETFs in fixed income, U.S. equity, and derivative strategies has likely led other asset managers to attempt to duplicate their success, or at least rethink their approach to product launches. I also believe investor thinking regarding active versus passive has changed. ETFs are no longer viewed solely as passive index tracking instruments but are widely being accepted as the more efficient investment vehicle.

Joseph Wilkins and I recently spoke about 'factor tilted' or 'research enhanced' active ETFs that are blending active and passive styles. It was great to discuss our approach within the JM Finn multi-asset funds where we hold a similar philosophy but take a more targeted approach. In parts of the portfolio where opportunity for active outperformance exists (high market dispersion and low market efficiency) we seek to take advantage of it through active management. Where active outperformance has proven more challenging (low market dispersion or high market efficiency) we seek to gain beta exposure through a more passive approach. You can read more about this in Joe's recent Financial Times article, 'Do portfolio managers really want active ETFs?' https://lnkd.in/ePkuQHFa

How to Navigate the Evolving ETF Landscape

How to Navigate the Evolving ETF Landscape

How to Navigate the Evolving ETF Landscape

How to Navigate the Evolving ETF Landscape

Here's an overview of where fixed-income ETF investors have been allocating their funds, nearly three months into 2024.

ETFs ARE NOT JUST PASSIVE The vast majority of ETFs on offer are passive i.e. they track the performance of an index like the S&P 500. BUT, that is now changing. Active ETFs are becoming more and more popular An Active ETF is where the fund aims to outperform the index and relies on the skill of the portfolio manager to do so. This is good if your investment objective is to outperform the market On the flipside though it probably means you will have to pay higher fees to avail of that opportunity. Active ETFs are still relatively new so you may not find a huge selection on your investment platform just yet. But the market is growing rapidly with more and more ETF managers launching such products so keep an eye out. If you like this type of content then please follow us at www.moolahinvest.com

What’s the probability that your funds or ETFs will “beat” the markets over the next 10 or 20 years? If they are “active” funds, meaning the managers try to win by picking stocks or timing when to get in or out, the odds aren’t very good. #finanicalplanning #investing #maximizeyourreturnonlife

What’s the probability that your funds or ETFs will “beat” the markets over the next 10 or 20 years? If they are “active” funds, meaning the managers try to win by picking stocks or timing when to get in or out, the odds aren’t very good. #finanicalplanning #investing #maximizeyourreturnonlife