FTFM Exchange traded funds have undoubtedly been some of the hottest investment vehicles going over the past few years, but still product providers seem unable to deliver what some have called the holy grail of the industry: the first actively managed ETF.
The potential for actively managed ETFs – baskets of securities that are designed to track indices and trade like stocks - is widely seen as the next frontier in ETF innovation. "At every ETF conference for the past five years they've talked a lot about how active management is the next big growth area, but so far it's not really happening," says Paul Mazzilli, an ETF analyst at Morgan Stanley.
