The 10 largest actively managed ETFs manage a combined total of $88.9 billion in assets, according to data from VettaFi. Of the 10 largest active ETFs, half were bond funds, two were stocks, two were commodities and one was preferred stocks.
Topping the list of active ETFs was the JPMorgan Ultra-Short Income ETF (JPST), with over $19 billion in assets. JPST seeks to provide current income while seeking to maintain low principal volatility by investing at least 80% of its assets in high quality short-term, fixed, floating and floating rate debt securities denominated in US dollars . It may invest in corporate securities, asset-backed securities, mortgage-backed securities and mortgage-linked securities and high quality money market instruments such as commercial paper and certificates of exchange. deposit.
In second place, with nearly $11.4 billion in assets under management, is the PIMCO Enhanced Short Maturity Active ETF (NYSE Arca: MINT), a bond fund that offers exposure to the ultrashort end of the maturity curve, focusing on corporate debt that matures in one year. MINT is extremely light on both interest rate risk and credit risk, and as such will generally provide a very low expected return. According to an analyst report from VettaFi, “MINT can be an excellent haven for storing assets in volatile markets and could outperform others in the category, but it has by far the highest expense ratio of money market funds. “.
Rounding out the three main ETFs is the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), with $9.8 billion in assets. PDBC seeks to achieve its investment objective of long-term capital appreciation by investing in a combination of financial instruments economically linked to the world’s most traded commodities. Additionally, PDBC offers exposure to commodity futures without the tax hassle of a K-1. The fund also tries to avoid negative returns, which could erode returns over time.
“Advisors are increasingly using active ETFs for a variety of investment styles,” said Todd Rosenbluth, head of research at VettaFi. “While some of the largest and oldest ETFs are focused on short-term fixed income securities, many other products have gained traction in recent years as client demand has also extended to stocks and stocks. raw materials.”
This heightened demand for active management is becoming particularly pronounced as stock and bond markets continue to be volatile (equities rallied on Tuesday after the S&P 500’s worst week in two years, and on Thursday, the yield on the U.S. Treasury 10-year benchmark started at 3.2%, rose to 3.5%, then fell to 3.18% in just 15 hours).
T. Rowe Price offers a suite of actively managed ETFs. T. Rowe Price has been in the investment industry for over 80 years conducting hands-on research with companies, utilizing risk management and employing a multitude of experienced portfolio managers averaging 22 years of experience .
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