They said the tax and trading advantages of index ETFs will carry over to the active versions but noted that some new ETFs are more appropriate as satellite holdings than as core holdings.
“If it’s a good wrapper or index, it maybe even a better wrapper for active,” said Jim Wiandt, president of Index Publications and IndexUniverse.com.
Richard Ferri, ceo of Portfolio Solutions, welcomed ETF innovation but warned that leveraged ETFs can be dangerous, as they carry twice the volatility of the market.
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