Actives Unlocked The ETF advantage - Page 3


This year has been some challenge for investors . Amid the war in Ukraine , skyrocketing inflation and rising bond yields , there really has been nowhere to hide for asset allocators in 2022 . Commodities led the way at the start of the year but have since fallen back , parts of the bond market have suffered some of the worst returns in decades forcing investors to maintain their short duration positions while equity returns have been muted at best .
The actions of the Federal Reserve in responding to multi-decade high inflation has been the key focus for markets this year . The US central bank has delivered four 75 basis point interest rate hikes in a row which has driven borrowing costs to the highest level since 2008 . The central bank ’ s actions will shape the course of the next 12 months as it looks to bring US Consumer Price Index ( CPI ) back towards its 2 % target .
Attention now turns to 2023 where investors will be preparing their portfolios for the year ahead . Amid continued uncertainty and a relatively sanguine outlook of the 59 professional investors ETF Stream surveyed in partnership with J . P . Morgan Asset Management ( JPMAM ) is now the time for active management ? This appears to be the case when studying the responses of the survey with investors more bullish about the outlook for active performance in 2023 versus passives .
Along with a survey , readers will find a number of articles on the wider active ETF space including a look at why non-transparent ETFs may not be the solution for active managers in Europe , JPMAM ’ s take on the current ESG landscape this side of the pond and the advantages of adopting an active approach when investing sustainably as well as an ETF Case Study with Andrew Limberis , investment manager at Omba Advisory & Investments , on the reasons his firm holds active ETFs within their multi-asset portfolios .
Overall , we hope this report in partnership with JPMAM provides investors with further concrete understanding about the rapidly developing active ETFs space in Europe as well as further insights into how buyers are positioning their portfolios for the year ahead .
Tom Eckett
Editor ETF Stream