Still, for every winner there is likely to be at least 10 failures, according to Psarofagis, who says this puts the onus on issuers to ramp up their sales and distribution efforts.
Distribution muscle has helped firms such as JPMorgan Asset Management quickly establish themselves. Though the company didn’t launch its first fund until 2014, the JPMorgan Ultra-Short Income ETF became the largest actively managed ETF earlier this month.
“Firms with distribution clout have been able to make inroads despite being late to arrive,” said Ben Johnson, Morningstar’s global director of ETF research. “Schwab, Fidelity, Goldman and JPMorgan are great examples of firms that have come late to the game with me-too offerings but have sold those in to their own captive channels and affiliates.”
This article was provided by Bloomberg News.