There will be more actively managed and eventually even nontransparent ETFs coming to market in the future, but not every strategy lends itself to that structure.
That’s one of the main takeaways from a panel at the Inside ETFs conference in Hollywood, Florida.
Actively managed ETFs have a better risk profile in less efficient markets but don’t belong in funds focusing on alternatives, said Shana Sissel, portfolio manager at CLS Investments.
They provide more choice for investors, especially for taxable accounts, said Dodd Kittsley, national director at Davis Advisors funds, whose current ETF lineup includes active and passive funds.