Key game changers in the smart-beta ETF space.
These funds established new ground when it came to an alternative to market cap.
Cumberland, for now, is sticking with its five ‘core’ equity ETFs in 2014.
Indexes have evolved, and so should best practices.
The story line on actively managed exchange-traded funds is that they are a failure. The media spent more than five years hyping the coming of actively managed ETFs, but when the first one hit the market in 2008, investors hardly noticed. As of March 31, 2010, there were (by most definitions) 17 actively managed ETFs available in the U.S. Collectively, those funds held $380 million, or about $22 million each.
There’s little question: The exchange-traded fund industry is booming. At the end of November 2009, U.S. ETF assets hit a new all-time high, of $752 billion, and inflows into ETFs were set to top $100 billion for the year. Based on prevailing expense ratios alone, the industry was earning $2.62 billion in annual fees.
Manager of institutional portfolios debunks concern that asset allocation strategies and rebalancing won't work in coming years.