Behind the more than $2 trillion now invested in exchange-traded funds are advisors who, for various reasons, decided it was time to strike out on their own and put ETFs at the center of their money management businesses.
Their motivations for breaking away vary, from a disenchantment with various aspects of the old ways to an unequivocal insight that the ETF is the only sensible way to build a cutting-edge 21st-century advisory business.
What unites them all is a view that cheap, transparent and tradable ETFs canvassing swaths of the investment universe broad and narrow opened up new possibilities of accessing a multitude of asset classes—and outperforming—with index ETFs. Who needs to pick stocks, use Morningstar “Style Boxes” or even use active mutual funds in 401(k)s when it can all done with ETFs?, the pioneers asked.
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