HYLD: Crushing The High Yield Bond ETF Competition

Actively managed ETFs have been slow to gain traction so far among most investors for a variety of reasons. Higher than average fees, a boatload of academic evidence suggesting inability of active management to consistently generate alpha, and concerns about disclosure requirements leading to front-running opportunities have all contributed to the relatively slow adoption rate of active equity ETFs. However, while actively-managed ETFs have been slow to catch on in highly liquid and transparent markets–such as large cap U.S. stocks–they have seen a fair amount of interest from investors looking to access asset classes that are generally less efficient. That phenomenon shouldn’t be surprising; there is some evidence that active management may be able to add value in harder-to-price sectors, such as smaller emerging equity markets or corners of the fixed income market. One example of a successful active ETF is the WisdomTree Dreyfus Emerging Currency Fund; CEW, which offers [...] Click here to read the original article on ETFdb.com. Related Posts: Active ETF Pipeline: Previewing Some Exciting Funds On The Horizon Recapping Impressive Innovation In Bond ETF Space ETFs For The Forgotten Asset Classes PHB: Different Kind Of Junk Bond ETF August ETF Data: Reversing Course