Exchange-traded funds can still compete in today’s “stock picking” market, according to a top investor.
“A lot of money is flowing into active ETFs because it provides the benefits of active management (or) stock picking … but also provides all the tax benefits and cost benefits that ETFs have,” said Constable Eduardo Eduardo Repetto told CNBC’s “ETF Edge” last week.
He expects actively managed ETFs to continue gaining traction in the second half of the year.
“We used to only have index ETFs,” Repetto noted. However, he emphasized that this has changed over the past three years as the number of actively managed ETFs has increased.
Repetto’s company is behind Avantis US Equity ETF, an actively managed U.S. equity portfolio.Its website shows that the fund’s main holdings are apple, Microsoft, amazon, meta platform and letter.
The ETF was up 12% this year through Friday and 49% over the past three years.