The company recently filed to roll out three new active ETF strategies already run as traditional funds.
Then again, as Rompotis notes, if their regular fund performance is any indication of active ETF performance, I doubt it.
He sees an advantage to this planned ETF in that investors who are used to passive ETFs will now be able to use this active ETF rather than having to constantly move money from one passive index strategy to another.
According to the ETF Finder at ETF Channel, COP makes up 6.34% of the Active Mega Cap Fund ETF ( AMEX: PMA) which is trading higher by about 4.6% on the day Thursday.
According to the ETF Finder at ETF Channel, DFS and APC collectively make up 2.06% of the Active Mega Cap Fund ETF (PMA) which is trading lower by about 0.2% on the day Tuesday.
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Thus, a low-volume ETF tracking active stocks can be more resilient to buying and selling than it might appear.
With the initial run of the Pimco Total Return ETF ( BOND), active ETFs and their managers may need to start thinking about the challenges that success could pose to the ETF structure.
And while many investment advisers traditionally wait for a 3-year track record to commit new money to an active strategy, the Pimco Total Return ETF will more likely be judged sooner by its variance to the Pimco Total Return Fund, sporting nearly a quarter-century of returns.
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Most asset classes are available in an index fund or ETF so there is no need for active funds.
The growth in fixed-income ETF investing is expected to continue as more investors and advisors convert from active management to index fund investing.
Back in December 2011, Fidelity filed for the right to launch a wide range of passive ETF strategies, and submitted new paperwork a year later detailing plans for active funds.
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Taken together, you can infer that the ETF structure, as currently concieved, could run into operational hiccups when an active strategy get too big for its britches.
Team Active has been engaged in a desperate plea for help in an industry that seems to give birth to a new ETF every week, making them costly, and as outdated as the mutual index fund.
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