Exchange-traded funds have had a banner year, reaching a new peak of
"We are likely to end 2012 with a record level of assets'' in exchange-traded funds and other exchange-traded products, said Deborah Fuhr, Managing Partner at ETFGI, the
Globally, assets placed in ETFs and ETPs reached an all-time high of
Assets in ETFs and ETPs reached all-time highs of
Worldwide, Vanguard gathered the largest net ETF and ETP inflows in November with
Domestically, Vanguard also has gathered the largest net ETF inflows for the first 11 months of the year, gaining
The iShares business is currently the largest ETF provider in terms of overall assets held at
Vanguard is second with
The big arrivals of the year: Actively managed ETFs-and its embodiment in the Total Return ETF(BOND) from Pacific Investment Management Co. The Total Return ETF, which is an exchange-traded offspring of the Total Return mutual fund from PIMCO, had raised
All told, actively managed ETFs crossed the
There are currently 12 active ETF sponsors managing 55 active ETFs. PIMCO now dominates the active ETF market with close to a 61% market share followed by WisdomTree at 27% and AdvisorShares at 6.7%.
"Active ETFs are growing at a rate of 100% like index-based ETFs did back in 1993 through 1996 when they were significantly smaller. Active ETFs are seeing more assets in the same timeframe than index-based ETFs did when they were just four years old," he said.
While Hamman acknowledged PIMCO's effort in the space, he said that he's content with his firm's growth compared to some of the other ETF shops that have come into the market and not make it.
For example, this past summer
"We've been happy that we've been able to grow by offering unique strategies in an active ETF structure," said Hamman.
AdvisorShares is launching the AdvisorShares Pring Turner Business Cycle (DBIZ) ETF on
"We're taking a strategy that
Hamman added that the firm is also teaming up with Newfleet Asset Management, a subsidiary of Virtus Investment Partners, to manage a global short-income duration strategy in early 2013. The firm also has an international short fund and a gold fund in the hamper.
Heading into 2013, Hamman said to watch out for more active ETFs from bigger firms such as Fidelity, which recently sought permission from the Securities and Exchange Commission for its own active ETF offering, including a corporate bond fund.
In 2013, fund managers will be watching how established active ETFs with track records of three or more years start to be ranked by
"We have a product that will be three years old next July, WCM/BNY Mellon Focused Growth ADR ETF (AADR), and it will be interesting to see how
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