ETFs have traditionally been programmatically managed, but increasingly fund managers are using them for their actively managed funds. This article predicts explosive growth for active ETFs.
... active ETFs appear unstoppable. Pooneh Barhai, co-leader of McKinsey’s Americas wealth management practice, says they will balloon in size from $15 billion to $500 billion by 2020. At present, active ETFs comprise mainly smart beta funds. But ETFs which track portfolios managed by individuals are sure to pick up momentum.