First Rodeo
It won’t be Yusko’s first rodeo. His firm previously lent its name to the AdvisorShares Morgan Creek Global Tactical ETF, which closed in May after six years, according to data compiled by Bloomberg. The fund advanced 3.9 percent in its best full year but lost money in 2011 and 2015, according to the data.
Yusko said that this year his firm’s portfolios "are well ahead of markets, even though we’re hedged."
While some actively managed ETFs have had notable success -- such as Pimco’s $7.38 billion Enhanced Short Maturity Active ETF -- most of the assets in the category are concentrated in bond, not equity, funds. Investors to date have appeared more willing to acknowledge managers’ skills in fixed income rather than in stocks.
"The active space in general is an exceedingly difficult place to add value," said Ben Johnson, director of global ETF and passive strategy research at Morningstar Inc. "If you’re going to plug your strategy in an ETF as opposed to a mutual fund, it might help you get more eyeballs, but it’s not going to do anything to boost your ability to pick winners over the long run."
This article was provided by Bloomberg News.