First it was smart beta then thematics and now actives have taken the ETF market by storm as investors see the benefits of incorporating ‘index-plus’ ETFs from the likes of J.P. Morgan Asset Management and Fidelity International within portfolios.
Highlighting this, the JPM US Research Enhanced Index Equity (ESG) UCITS ETF (JREU), now Europe’s largest active ETF, has ballooned to $7.8bn assets under management (AUM) as the lure of alpha drives its inclusion as a core holding within portfolios.
Judging which exposure to adopt an active approach can be a real challenge for fund selectors. Traditionally, investors have strayed away from efficient markets such as US equities and into areas including UK small caps and emerging markets where passives have struggled.
This is also the case in fixed income where active managers have been able to capture inefficiencies across markets. Despite this, the active fixed income UCITS ETF is currently grossly underserved by asset managers, with fund selectors crying out for more innovative solutions.
The June 2024 issue of ETF Insider focuses on the areas of the market where active managers typically outperform and why fixed income is so attractive for active.
Also inside are the usual segments such as ETF of the Month (p.13), Education Corner (p.12), Fund Fights (p.15) and Expert Investors, where ETF Stream interviews fund selectors on the role of ETFs within their asset allocation (p.11).
Read the headlines below:
Leader: Active vs passive: The actual investor experience (p.30)
Active ETFs suffer from one drawback (p.7)
ETF Buyers Club: Is it time to get more active with ETFs? (p.16)
The Patient Investor: The siren call of GDP growth (p.20)
‘Here to stay’: A breakdown of Europe’s active ETF market (p.22)
Fund selectors eye active bond ETFs to play inefficiencies (p.26)
Sponsored content from Fidelity International, First Trust, JP Morgan Asset Management and Xtrackers by DWS:
Active ETFs take centre stage (p.24)
Powering active ETFs with next-gen technology (p.28)
Roundtable: The role of fixed income ETFs in portfolios (p.34)
Roundtable: Building protection across multiasset portfolios as markets soar (p.38)
ETF Insider is only available to professional investors and members of the ETF industry in Europe. To access the full issue of ETF Insider, click here.
