Active asset managers are betting that financial advisors and investors will move some of the trillions of dollars in cash vehicles into ETFs that cost more but may outperform their peers.
Money-market funds fueled by rising interest rates and yields topped $6 trillion in assets for the first time at the end of last month — just as passive mutual funds and ETFs reached a long-anticipated milestone by eclipsing the holdings in active strategies. Newer products that are gaining more notice could still win over advisors and investors who are likely to cut the cash allocations in their portfolio once the Fed proceeds as expected by slashing interest rates later this year, according to active managers.
“The reason we’re investing in women CEOs is because we think they will outperform. To the extent that an active strategy can consistently outperform other alternatives, it will continue to…
