This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

ETFs for Rich Draw Little Interest

NEW YORK ( TheStreet) -- While Barclays' (BCS) new Wealth ETF Tactical Allocation BETA Portfolios are a unique stop forward for the much-anticipated active ETF industry, these asset allocation strategies eschew many of the basic characteristics of ETFs that have made the funds so popular.

The eight new portfolios are geared toward wealthy investors, with at least $10 million in assets, who are looking to open small, actively managed accounts. These strategies are intended to be applied to a small account like a trust.

Limited availability and lack of transparency will make these strategies hard for many ETF investors to swallow. At the same time, the launch of these ETF portfolios reflects an ETF industry shift towards broader asset allocation strategies and long-term management products traditionally seen in the mutual fund industry.

Thus far, the hotly anticipated, actively managed ETF products have had trouble gaining traction. Investors accustomed to using low-priced ETFs to target specific sectors and themes have been slow to adopt higher-priced active strategies that are often less transparent in their objectives and defined in their scope.

While the new Barclays products will be available only to select investors with large accounts, a number of actively managed funds are currently available to U.S. investors on the major exchanges.

Grail Advisors launched the Grail American Beacon Large Cap Value (GVT) in early May 2009. The active ETF issuer followed GVT's debut with four other active ETFs in early October, including the RP Technology ETF (RPQ) and RP Financials ETF (RFF).

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BCS $15.86 0.00%
BAC $15.81 0.00%
GVT $46.17 0.00%
JPM $61.28 0.00%
VTV $85.33 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs