SEI ETF Series Outlines Manager Challenges, Opportunities In Rapidly Growing Space
Latest ETF Product Innovation—Actively Managed ETFs—and Key Factors for Success Examined
OAKS, Pa., Nov. 9, 2009 – The U.S. exchange traded fund (ETF) market, consisting of over 800 ETFs and approximately $600 billion in assets, has more than doubled since 2004, with experts predicting it will likely hit $1 trillion over the next three years. Recognizing the demand investment managers have for more in-depth information on these products, SEI (NASDAQ: SEIC) recently released a two-part research series examining the ETF landscape to help managers understand the challenges and opportunities posed by this rapidly growing product.
The series outlines key features of ETFs, compares them to index mutual funds, and addresses current and future product usage. It also explores the latest ETF innovation – actively managed ETFs – in detail, while discussing the potential for converting mutual funds to ETFs.
“This series looks beyond the dramatic growth that has taken place in the ETF market to provide insights into where future growth may come from and the related operational issues and practical challenges faced by current and aspiring ETF sponsors,” said Phil Masterson, Managing Director for SEI’s Investment Manager Services division. “Whether looking at the viability of converting a mutual fund to an ETF or examining the tax efficiency of an actively managed ETF, this series is designed to provide managers with perspective on the key issues the market is facing, or will face in the future, to help them make better informed decisions for their businesses.”
The first brief, The Current ETF Landscape, provides an overview of ETFs including history, product classification, and features. It also outlines current and future ETF usage, pointing to the 401(k) market as an untapped growth area. The second brief, Actively Managed Exchange Traded Funds, focuses on the most recent ETF product innovation, analyzing both the potential for these non-passive products, and the impediments to their wide-spread adoption.
The briefs are published by the SEI Knowledge Partnership, which provides ongoing business intelligence to SEI’s investment manager clients. To download the strategy briefs, visit http://www.seic.com/enUS/about/2302.htm.
About SEI's Investment Manager Services Division
SEI's Investment Manager Services division provides total operations outsourcing solutions to global investment managers focused on mutual funds, hedge and private equity funds, exchange traded funds, collective trusts, separately managed accounts and institutional and private client services. The division applies operating services, technologies, and business and regulatory knowledge to each client’s business objectives. Its resources enable clients to meet the demands of the marketplace and sharpen business strategies by focusing on their core competencies. For more information, visit http://www.seic.com/enUS/im/343.htm.
SEI (NASDAQ:SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company’s innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of September 30, 2009, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $383 billion in mutual fund and pooled assets and manages $156 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit www.seic.com.