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Stock impact report

The $630 Billion Active-ETF Boom Is Dominated by Top 10 Players [BNN Bloomberg (Canada)]

JP Morgan Chase & Co. (JPM) 
Last jp morgan chase & co. earnings: 4/14 06:43 am Check Earnings Report
Company Research Source: BNN Bloomberg
While this breed of fund has attracted record sums of cash in recent years, it's no “panacea” for managers, according to a Morningstar report published this week. In fact, 74% of the nearly $630 billion in US active ETFs is controlled by the top 10 issuers in a field of about 320 firms that have embraced the wrapper — meaning that the pool of companies benefiting from the asset boom is exceedingly small. The research is a cautionary tale to money managers who have watched billions of dollars drain from actively managed mutual funds in favor of the lower cost, tax-efficient ETF wrapper. That dynamic has spurred an arms race among issuers seeking to grab share of a rapidly growing pie, spurring record fund launches. But while it's true that actively managed ETFs have posted record-breaking inflows at the expense of their mutual fund peers, the reality is that the leadership in the active ETF industry is very concentrated and success is far from guaranteed, Morningstar said. “Many s Show less Read more
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