Updated Saturday, November 1, 2014 as of 7:10 AM ET

BlackRock’s Wiedman Says Active ETFs Are 'Out of Money' Option

(Bloomberg) -- BlackRock has spent three years crafting a new type of actively-managed exchange-traded fund thatís stoked optimism in the U.S. for expansion of the $1.8 trillion industry.

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Comments (1)
The market will only be a dud, if they expect retail brokers to sell it as a product. Remember DFA has a very narrow distribution with advisors who are principally engaged in portfolio construction which is a very small fraction of all brokers, but account for a very large percentage of fund flows.

The question is what percentage of all brokers are interested in portfolio construction versus product sales. DFAs focus on portfolio construction has paid off handsomely as the get all the advisors assets rather than isolated transactions. If Black Rock's distribution strategy emphasizes how products impact client portfolios as a whole active ETFs will win big. If it emphasizes a hot product, it will fail.

SCW
Posted by Stephen W | Friday, May 30 2014 at 2:32PM ET
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