Asset managers seek a variety of approaches to offer ETF products

The January 2015 issue of The Cerulli Edge – U.S. Monthly Product Trends evaluates exchange-traded funds (ETFs). The January Monthly Spotlight examines the best-selling mutual fund, ETF, and Morningstar categories of 2014.

Highlights from this research:

Asset managers are seeking a variety of approaches to offer ETF products, such as using their firm’s existing infrastructure capabilities to offer similar strategies in an ETF or acquiring an existing ETF boutique that has the distribution already in place.

Mutual fund assets fell 2.4% to $11.9 trillion in December, due to both outflows ($13 billion) and overall poor market performance. ETF assets grew by 0.9% during the month of December, ending the year at nearly $2 trillion. This growth can be largely attributed to December inflows of nearly $52 billion.

To gather and retain master limited partnership (MLP) fund assets during this period of heightened market volatility, managers need to maintain a proactive communication stance with clients and prospects. Cerulli counsels MLP product marketers to review their content to make sure it is up-to-date and relevant.