The saving grace for some much-criticized active mutual fund PMs may lie in ETFs, specifically active ETFs.
That's the theory posited
by Scott Burns
's director of fund research for North America, in an interview with Jason Kephart of InvestmentNews
Burns argued that closet indexers, active PMs who try not to stray too far from their benchmarks, could benefit from active ETFs' ability to sidestep fees that normally cut into their small alpha, fees like 12b-1s, platform fees and sales loads.
"They need every basis point they can get," Burns told the trade pub.
Neil Anderson, Managing Editor
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