Strategy Brief: Active ETFs (SEI)

May 2013

KEYWORDS: ETF, ETFs, assets under management, AUM, commodities, index, Exchange-Traded Funds, SEC, Securities and Exchange Commission, redemption terms, actively managed ETF, NAV reports, Authorized Participants, over-the-counter derivatives, OTC derivatives, mutual funds, Nasdaq, S&P 500

Authors:

SEI, ETF Trends

Organizations:
  • SEI

Summary:

Many regard exchange-traded funds (ETFs) as purely passive, beta-indexing tools for basic market exposure. To date, this has been generally true, but the rise of active management in the ETF space may well be the next step in its evolution.

For this segment of the industry to grow, however, advisors, investors and investment managers must be better informed about both the unique benefits and drawbacks of these vehicles in order to take advantage of them while also mitigating potential risks.

In this strategy brief, we examine the active ETF marketplace by evaluating:

  • Where active ETFs are now
  • How they are different
  • The SEC’s impact
  • The new wave of actively managed ETF sponsors

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