Twelve Things You Need to Know About ETFs

By Ben Steverman - 2012-02-27T22:16:37Z

Illustration by Dennis Pacheco

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Are actively managed ETFs the wave of the future?

So far the vast majority of ETF assets are in funds based on indexes. Actively managed ETFs exist, but their managers are usually newcomers without much of a track record, Crawford says. That's about to change. On March 1, Bill Gross will open an ETF version of his PIMCO Total Return Fund, the world's largest bond fund. It will have an expense ratio of 0.55 percent, more than the fixed-income ETF average of 0.38 percent. Janus, Legg Mason and T. Rowe Price have filed plans for their own actively managed ETFs.

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