ETFs
Active ETFs are great, but mutual funds still matter!
It’s not news that active funds have been losing outflows for some time. While index funds and ETFs have grown in popularity, active mutual funds have suffered increasing outflows, peaking at $962 billion in 2022. But now, a lifeline in the form of active ETFs is taking the asset management industry by storm. But are active ETFs a saving grace for active managers, or just another tool in the tool belt?
“This is not just a defensive play,” said Jodi Love, a portfolio manager at T. Rowe Awardat the annual Morningstar Investment Conference held Thursday in Chicago.
“Assets that leave mutual funds…may reach an entirely different subset of customers, and [this] “This allows us to do it in a new way. So we don’t see it as a defensive action, but as an offensive action,” she continued.