Exchange-traded funds (ETFs) have become a primary investment for asset managers to gain low-cost access to broad segments of the markets. Recently, ETFs have grown to focus on more niche parts of the investment universe (e.g., sector ETFs, thematic ETFs, etc.). The growth in the number and size of these products reflects an asset management trend away from concentrated portfolios to asset allocation strategies. Read more about these strategies below.
Liquidity Is Out, ETFs Are In
The SEC’s stance on its not-yet-effective liquidity rule appears fluid, as commissioners push to abandon part of the rule and certain division heads move on to other topics.