The paper — “Exchange-Traded Funds: A Passive Past and an Active Future” — provides a backdrop on the use of ETF securities as well as an analysis of the Funds’ evolution. Most importantly, the paper looks forward to future development possibilities of the ETF industry, including the expanding marketplace for actively-managed ETFs.
The paper notes that with assets climbing to more than $725 billion in just 15 years, ETFs are one of the industry’s fastest-growing investment vehicles. Why all the interest in ETFs? According the Grail Advisors study “…because they’re easy to buy, inexpensive to own, tax efficient, and totally transparent(1) in terms of portfolio allocation. ETFs enable investors to trade a portfolio of stocks with a single investment as easily as if they were buying an individual stock.”
The Grail Advisors paper outlines the competitive differences between ETFs and mutual funds, and cites other independent research, including a recent survey by Charles Schwab that found 79% of registered investment advisors are looking to ETFs as the top investment vehicles for their clients.
“For mutual fund managers and financial advisers, the report outlines why investors are increasingly moving out of traditional mutual funds and putting money into ETFs,” said William M. Thomas, CEO of Grail Advisors LLC. “Market appreciation is uncertain, of course, and so are immediate flows into actively-managed funds, but we think it’s reasonable to expect worldwide ETF assets to reach the $1 trillion milestone in the very near term.”
To receive a copy of “Exchange-Traded Funds: A Passive Past and an Active Future,” call Grail Advisors at (415) 677-5870, or email [email protected].
In May, Grail Advisors launched the market’s first true, actively-managed equity ETF, the Grail American Beacon Large Cap Value ETF (GVT). Traded on the New York Stock Exchange, GVT represents the first fund designed to incorporate traditional investment management approach and a multi-manager format into an active ETF structure. The Grail American Beacon International Equity ETF — the first actively-managed international ETF of its kind — will be launched later this year.
The firm has also announced plans to introduce the industry’s first actively-managed ETFs using a single-manager approach. Four funds — RP Growth ETF, RP Focused Large Cap Growth ETF, RP Technology ETF, and RP Financials ETF — are slated for in September. RiverPark Advisors, LLC, of New York will serve as the primary sub-adviser for each of the funds.
About Grail Advisors LLC
Grail Advisors LLC, an innovator in the creation and distribution of actively managed Exchange Traded Funds, partners with established asset managers, distributors, and related financial institutions to design and deliver actively managed ETFs. Grail Advisors was created to deliver ETFs using fully disclosed active portfolio management to the global investment community.
(1) ETFs are considered transparent because their portfolio holdings are disclosed daily.
Ordinary brokerage fees apply. Frequent trading of ETFs could significantly increase commissions and other costs which could offset any savings from lower fees.
Shares are not individually redeemable and that the owners of Shares may purchase or redeem Shares from a Fund in Creation Units only.
For more information about taxes, consult your tax attorney or accountant for advice.
There are risks involved with investing including possible loss of principal. The Grail ETFs are actively managed and the Shares may trade above or below their net asset value. The trading price of shares may deviate significantly from net asset value during periods of market volatility. Shares are not FDIC insured, may lose value, and will have no bank guarantee.
A registration statement relating to the RP Growth ETF, RP Focused Large Cap Growth ETF, RP Technology ETF, and RP Financials ETF have been filed with the U.S. Securities and Exchange Commission but have not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. For more complete information about the Grail ETFs or to obtain a Prospectus, call 415-677-5870. Please read the Prospectus carefully before investing.
ALPS Distributors, Inc. is not affiliated with RiverPark Advisors.
The Grail ETFs are distributed by ALPS Distributors, Inc.