BlackRock’s Mark Wiedman says up to 12% of iShares’ inflows come via ETF model portfolios. Also known as ETF strategies, ETF managed accounts or ETF model portfolios, the business broadly refers to money managers who use ETFs to build investment portfolios instead of, or in addition to, individual stocks and bonds. Wells Fargo & Co., for example, has more than $20 billion in ETF portfolios, and Bank of America Merrill Lynch has more than $50 billion, both far larger than the biggest strategists reporting to Morningstar. Whatever it’s called, the growth of actively managed ETF portfolios has turned passive investing on its head. The firm’s ETF portfolios are growing at the fastest rate in five years, she says.

Source: Wall Street Journal September 25, 2017 02:25 UTC