Noah Hamman is happy to take up the flag for the active ETF space as a whole.
“In some ways, I feel that from a marketing perspective so much of what we do is addressing the issues the industry faces as a whole,” he says.
When asked about what’s happening with active ETFs now that they’ve hit their five-year mark, Hamman, founder and CEO of AdvisorShares Investments, is succinct; “They’re growing.”
“They’re experiencing triple-digit growth, just liked index-based products did in their early years,” he elaborates, “But the indexed based-products started off with a well-known index behind them, the S&P 500.”
And while investors typically use indexed-based ETFs for trading purposes, Hamman is seeing advisors “making more dollar cost averaging –type of investments for their clients for the longer term, rather than these massive trades, so it results in a smaller ticket size.”
So after five years since the first actively managed ETFs came to market, have they finally “arrived” as a viable product? Hamman doesn’t hesitate, noting the growth has resulted in more products and more assets under management than index-based ETFs had in their first five years.