Actively Managed ETFs in the U.S. Eclipse $250 billion in AUM

Rhea-AI Summary

Active exchange-traded funds (ETFs) have seen significant growth, recently surpassing $250 billion in assets under management since the SEC's ETF Rule was enacted in September 2019. Currently, there are over 600 active ETF strategies available in the U.S., contributing to increased competition and choices for investors. Changebridge Capital, based in Boston, has launched the Long/Short Equity ETF (CBLS) and Sustainable Equity ETF (CBSE), catering to a growing demand for actively managed ETFs. The trend is supported by over $50 billion in net cash flow year-to-date.

Positive

• Active ETFs assets under management exceed $250 billion, indicating strong market demand.
• Growth in actively managed ETF strategies has more than doubled since the introduction of the ETF Rule.
• Changebridge Capital introduced two ETFs (CBLS and CBSE) in response to increasing investor interest.

Negative

• None.

BOSTON, June 28, 2021 /PRNewswire/ -- Industry participants often cite liquidity, costs, transparency, and the relative tax advantages of exchange-traded funds (ETFs) as catalysts for the broad adoption of the structure over the past three decades.  Until recently, actively managed versions of ETFs were scarce, but growth has accelerated since the adoption of Rule 6c-11 (also known as "The ETF Rule") by the SEC in September 2019.

The ETF Rule provided a clear and consistent framework for active managers to take advantage of the ETF structure, and less than two years later the number of actively managed strategies and assets have more than doubled.  There are currently more than 600 Active ETF strategies listed in the US, while assets under management recently crossed the $250 billion milestone.¹

Changebridge Capital, a Boston-based asset manager of active ETFs anticipates increased interest amongst issuers and investors alike.  The team listed the Changebridge Capital Long/Short Equity ETF [ticker: CBLS] as well as the Changebridge Capital Sustainable Equity ETF [ticker: CBSE] on the NYSE Arca in 2020.

"Increased competition and innovation in the ETF marketplace have led to more choices for investors.  These are precisely the intentions cited by the SEC when the ETF Rule was introduced," said Changebridge's Founder, Ross Klein.

Douglas Yones, Head of Exchange Traded Products at the New York Stock Exchange notes: "ETFs have become an investment vehicle of choice for investors worldwide, and with over $50 billion in year-to-date net cash flow, Active ETFs are a significant part of the industry growth story here at the New York Stock Exchange."

Changebridge's Co-Founder, Vince Lorusso, directly connects the firm's own product innovation with the growing appetite for actively managed ETFs.

"Our firm is guided by our investment process and client-centric approach, so the potential to integrate our style of active management in the ETF structure was compelling.  As a result, investors can access our Sustainable Equity ETF and our Long/Short Equity ETF with daily holdings transparency, intraday liquidity, and the potential tax advantages of the ETF structure.  We are thrilled to be part of the innovation that is taking place in the Active ETF landscape," said Lorusso.

About Changebridge Capital

Changebridge Capital was founded on the belief that capital markets include areas of inefficiency, which can be identified through the combination of our quantitative system and rigorous fundamental research.

Investors should consider investment objectives, risks, charges and expenses of the funds carefully before investing.  This and other information are contained in the Fund's prospectus, which may be obtained by visiting www.changebridgefunds.com or by calling (617)717-2912.  Please read the prospectus carefully before investing. 

Investing involves risk including possible loss of principal.

Distributed by Foreside Fund Services, LLC.

¹ Bloomberg

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/actively-managed-etfs-in-the-us-eclipse-250-billion-in-aum-301321087.html

SOURCE Changebridge Capital

FAQ

What is the significance of the SEC's ETF Rule introduced in September 2019?

The ETF Rule provided a framework for active managers, leading to significant growth in actively managed ETFs.

How many active ETF strategies are currently listed in the US?

There are over 600 active ETF strategies listed in the US.

What assets under management did active ETFs recently surpass?

Active ETFs recently surpassed $250 billion in assets under management.

What are the tickers for Changebridge Capital's ETFs?

Changebridge Capital's ETFs have the tickers CBLS for Long/Short Equity ETF and CBSE for Sustainable Equity ETF.

What recent cash flow trends are seen in the active ETF market?

The active ETF market has experienced over $50 billion in net cash flow year-to-date.