remain just a sliver of the overall ETF universe.
There are 1,445 ETFs and ETNs trading in the U.S., but a mere
58 are actively managed, a figure that equals just four percent
of the U.S. exchange traded products universe,
according to ETF Trends
And when it comes to the conversation about actively managed
ETFs, one fund stands above all others: The PIMCO Total Return
). Colloquially referred to as the "Bill Gross ETF," BOND has
attracted over $4.8 billion in assets in less than 14 months of
That is an impressive haul and to be fair, BOND has delivered
with a gain of 11 percent in the past year. The downside of
BOND's dominance and popularity is that some other actively
managed ETFs worthy of investors' consideration have almost been
doomed to under the radar existences. That should not be the case
as the following funds prove.
AdvisorShares Cambria Global Tactical ETF (NYSE:
) The Cambria Global Tactical ETF is managed by Mebane Faber's
Cambria Investment Management and a simple way of looking at this
ETF is that it is an ETF fund of funds. Meaning all of GTAA's
roughly 65 holdings are other ETFs.
That strategy leads to a broad mix of asset classes as foreign
stocks, emerging markets equities, U.S. stocks and U.S. real
estate names all receive double-digit allocations within the
fund. U.S. bonds and commodities combine for another 23 percent
of the fund's weight. GTAA's top holdings include the Vanguard
REIT Index ETF (NYSE:
), SPDR Dow Jones International Real Estate ETF (NYSE:
) and the iShares MSCI Belgium Investable Market Index Fund
GTAA has a gross expense ratio of 1.41 percent,
according to AdvisorShares data
. On that note, it should be highlighted that GTAA's fees
will be reduced as the funds attracts more
. The ETF has been a solid performer gaining 8.5 percent in the
past year and 4.1 percent year-to-date.
WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ:
) The WisdomTree Emerging Markets Corporate Bond Fund had the
misfortune of debuting around the same time that BOND came to
market. While the two funds obviously have vastly different
objectives, EMCB's place in the actively managed ETF conversation
arguably suffered, at least initially. That is starting to change
for the better.
As it should. EMCB has attracted over $128 million in assets
under management and has returned more than seven percent since
its debut. Notably, EMCB does not represent increased credit risk
for corporate bond investors as nearly 61 percent of the ETF's
holdings are rated BBB. Another 11.3 percent are rated AA or
Country allocations here are important and this is where EMCB
has the potential to deliver for investors. EMCB devotes a
combined 42.3 percent of its weight to Mexico and Russia,
two corporate bond markets currently viewed as
by some portfolio managers.
And for what it is worth, DoubleLine's Jeffrey Gundlach said
on Thursday emerging markets corporates are the best area of
investment-grade fixed income at the moment,
EMCB's effective duration is 6.03 years with an average yield
to maturity of 4.44 percent.
WisdomTree Asia Local Debt Fund (NYSE:
) By the standards of actively managed ETFs, the WisdomTree Asia
Local Debt Fund is a behemoth with over $547 million in AUM. The
fund is deserving of those assets and has proven as much. With
the recent upgrade by Fitch Ratings of the Philippines to
all of ALD's constituent countries have
from at least one major ratings agency.
Additionally, although ALD has "Asia" in its name, it should
be pointed out this not a pure play emerging markets fund.
Rather, ALD does a fine job of mixing in AAA-rated developed
markets such as Australia, Hong Kong and Singapore along with
high-yielding New Zealand and rapidly growing emerging markets
such as Thailand, Malaysia and Indonesia.
ALD is also attractive regarding sensitivity to interest rate
increases with an effective duration of just 3.52 years. The
ETF's average yield to maturity is 2.73 percent and the fund has
a 30-day SEC yield of 2.25 percent.
For more on ETFs, click
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga