Reported 2 days ago
A recent report by Broadridge Financial Solutions found that active ETFs need to raise over $100 million in their first year to achieve long-term success, with those funds typically exceeding $1 billion by their third year. The research indicates that only 11% of these ETFs reach this threshold, highlighting the importance of early momentum in a market that is rapidly growing but still concentrated among a few top managers. Despite challenges, levels of asset concentration have decreased, and strategies focusing on effective distribution channels and targeted advisor engagement can improve performance for new funds.
Source: YAHOO