You can always find promising ways to invest. But your portfolio can live without this particular new investment vehicle, even though many have anticipated it for years.
Earlier this month, a relatively small fund company, Grail Advisors, launched an actively managed exchange-traded fund named Grail American Beacon Large Cap Value ETF.
Unlike previous active ETFs, which have investment objectives that require them to follow quantitative models without room for subjective thought, Grail’s offering gives its managers latitude to buy whatever stocks they believe will help the ETF outperform the Russell 1000 Value index of large-cap value stocks.
Hey! It’s just another fund!
The endless hype about ETFs amuses me. It seems like anytime a new ETF comes out, many investors hold their breath, hoping that they’ve stumbled onto the next great innovation in investing — and will somehow capitalize by getting in on the ground floor.