“Active managers are now taking a lot of their insights and packaging them up in rules-based ways and delivering them to clients to be a complement and also an alternative to pure passive,” says Oppenheimer Funds’ Mo Haghbin.
Spikes in volatility levels can impact returns on a fund’s portfolio. The relatively low leverage point (1.25X) for Portfolio+ ETFs provide less impact of negative compounding over time for long-term investors.
The world's largest asset manager is heavily involved in index investing, managing $1.8 trillion in iShares-brand exchange-traded funds and another $2.4 trillion in non-ETF index funds.
Asset managers are racing to lower fees for their ETFs to attract assets. Low expense ratios are eye-catching, but investors need to dig deeper to understand how similar sounding ETFs actually have different exposures and disparate performances.
