Exchange-traded funds can still be competitive in today’s stock-picking market, according to a leading investor.
“A lot of money is invested in active ETFs because they offer the benefits you get from actively managing (or) stock picking…but also all the tax advantages and cost advantages that you have in an ETF,” the chief investment officer of Avantis Investors said. Officer Eduardo Repetto told CNBC “ETF Edge” last week.
He predicts that actively managed ETFs will continue to gain traction in the second half of the year.
“Before, we only had index ETFs,” Repetto noted. However, he pointed out that this has changed over the past three years as the number of actively managed ETFs has increased.
The Repetto company is at the origin of the Avantis U.S. Equity ETF, an actively managed US equity portfolio. Its website indicates that the fund’s top holdings are Apple, Microsoft, Amazon, Metaplatforms And Alphabet.
On Friday, the ETF was up 12% this year and 49% over the past three years.