Turbocharging ETFs

The first actively managed exchange-traded funds have been sanctioned in the US and the race to launch them into the market is under way. But what are the implications of this new breed of active ETF, and where will they sit in the wider investment landscape? Emma Dunkley reports

The market in exchange-traded funds (ETFs) has come a long way since the first ETF tracking the S&P 500 was launched by State Street Global Advisors in 1993. Since then, the market has blossomed to number 1,171 ETFs with 1,909 listings on 41 exchanges worldwide, according to the Morgan Stanley Year End 2007 Global Report. If the report's suggestion that plans exist to launch a further 399 ETFs in the US, 547 in Europe and 58 in other regions around the world are true, the ETF market will remain