As more ETF managed portfolios are rolled out, global strategies hold 72% of the assets reported to Morningstar.
Within the global strategies space, all-asset strategies comprise the single largest category, according to Andrew Gogerty, an ETF managed portfolios strategist at Morningstar.
“Primarily structured as separate accounts, the ETF managed portfolio strategies typically have more than 50% of portfolio assets invested in exchange-traded funds and represent one of the fastest-growing segments of the managed-account universe,” he writes.
Morningstar is now tracking nearly 370 strategies from 95 firms with assets of $27 billion as of September 2011, a 43% growth rate over the previous 12 months.
ETF managed portfolio launches have increased dramatically and are expected to continue as money management is increasingly outsourced, Morningstar predicts.