By Morningstar:
By Andrew Gogerty
Two weeks ago, Morningstar released the ETF Managed Portfolios Landscape Report at IndexUniverse's Inside ETFs Conference. Primarily structured as separate accounts, the ETF Managed Portfolio strategies typically have more than 50% of portfolio assets invested in exchange-traded funds and represent one of the fastest-growing segments of the managed-account universe. Morningstar is currently tracking nearly 370 strategies from 95 firms with collective assets under advisement, or AUA, of $27 billion as of September 2011--a 43% growth rate over the previous 12 months.
We estimate that the total ETF managed portfolio space is likely between $40 billion and $100 billion when considering discretionary and non-discretionary assets and model portfolios. Strategy launches have increased dramatically in recent years: Nearly two thirds of the strategies started in 2005 or later, and 30% of the strategies are less than three years old. Whether mandated by law or continued market pressures, the fiduciary
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