The end of alpha
Institutions are giving up on the hunt for alpha in favour of passive strategies. This trend will support continued exchange-traded fund (ETF) use, says Cerulli
- December 9, 2013 September 13, 2019
- 07:00
Institutions are giving up on the hunt for alpha in favour of passive strategies. This trend will support continued exchange-traded fund (ETF) use, says Cerulli
New exchange-traded products hedge all the right risks but require investment gymnastics to create the right fit for a pension portfolio. Providers looking to crack the pension space need to go beyond off-the-shelf products if they expect to make any headway.
Could bond exchange-traded funds help plan sponsors find the right asset-liability match in this low-rate world?
Exchange-traded funds have been one of the most effective disruptors of the status quo, and it’s a story that’s just beginning. However, according to a new report from PwC, if the industry really wants to put down deep roots, providers are going to have to go beyond business as usual. That means addressing five main challenges.
October saw a reversal of the trend with a flurry of activity on the launch front, according to Seeking Alpha. The spike saw 30 launches happen during the month, although there were another 15 closures. At the same time, there have been 56 closures in 2013, or one closure for every 2.4 introductions.
As investors feel from inflation-protected exchange-traded funds, Pimco's El-Erian warns that major economies are driving straight for a possible inflation crisis.
New paper posits the impact on rates.
In the asset management space, the relationship between active exchange-traded funds (ETFs) and active mutual funds is rather like that uneasy relationship between the older generation and the kids. Those new and shiny active ETFs promise all the benefits of skilled and experienced management on the cheap. The question is, can both products exist under one roof? Or will the young upstarts kick the old guard out onto the heath?
As exchange-traded fund product launches stall and more funds close, providers begin to focus on the real challenge -- making it easy for investors to buy their products.
Two recent stories paint a striking picture of the evolving relationship between active and passive strategies and the increasing intermingling of the two by managers. One calls it highway robbery; another calls it a tool of the trade. Between the two poles, exchange-traded funds are finding a solid niche.