In the separate accounts space, exchange traded funds managed portfolios have regained some lost ground, growing for the second consecutive quarter.
As of the end of the second quarter, there were 787 strategies from 151 firms with $84 billion in assets under management, a 11% increase in assets from the first quarter, according to Morningstar.
The ETF managed portfolios space saw $5.1 billion in quarter-over-quarter growth, marking the second consecutive quarter of growth.
ETF managed portfolios are investment strategies that hold more than 50% of assets invested in ETFs and represented one of the fastest growing segments in the separate accounts space. Specifically, ETF managed portfolios offer three major investment themes: tactical, strategic and hybrid mix. The tactical offerings provide short-term plays to capitalize on investment opportunities that are forming, whereas the strategic play provides long-term allocation across sectors and asset classes. Additionally, the hybrid mix includes a combination of tactical and strategic elements.
“The negative effects of ongoing outflows from strategies managed by some of the largest operators in the space were more than offset by their peers’ gains as well as by the addition of new strategies to our database,” Ben Johnson, director of global ETF research for Morningstar, said in a note.
Notably, BlackRock’s ETF Managed Portfolios were added into the Morningstar data base for the first time over Q2. BlackRock is now the fourth major ETF provider, after Vanguard, Charles Schwab and State Street Global Advisors, to report strategies to Morningstar. BlackRock ranks sixth in overall assets under management.
Global All-Asset and Global Balanced strategies stumbled over the first half of 2016, which caused continued outflows form some of the largest options in the space.
The Windhaven Diversified Growth strategy remained the largest offering in the space with $5.5 billion in assets under management, followed by BlackRock Multi-Asset Income with $3.2 billion and Windhaven Diversified Aggressive $3.1 billion.
Windhaven Investment Management, a unit of Charles Schwab and largest company in the space, held $10.6 billion in assets. RiverFront Investment Group, the second largest provider, held $5.5 billion in assets. State Street Global Advisors came in third with $4.7 billion in assets.
For more information on the ETF managed portfolios space, visit our ETF managed portfolios category.
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