Actively Traded ETFs!

In September 2009, Harry Dent, a US Economist launched Dent Tactical ETF (MER 1.56 percent) - a rare breed among exchange traded fund. Dent Tactical is an actively managed ETF in that it doesn't trade an index. It invests in sector, industry or country ETFs where Mr. Dent sees opportunities based on demographic and other trends.

Non-index ETFs are still very much the newcomers in North America, but they are slowly becoming part of a growing niche that is expected to rival traditional mutual funds.

More Non-Index actively managed ETFs:

Company: Advisorshares

• WCM/BNY Mellon Focused Growth ADR ETF
  
• Legacy Long/Short ETF

Company: Grail Advisors LLC

• Grail American Beacon Large Cap Value ETF (It invests in 3 mutual funds)

Company: AlphaPro Management Inc

• Horizons AlphaPro Managed S&P TSX 60 (Invests in stocks chosen by technical analyst Ron Miesels)
  
• Horizons AlphaPro Gartman Fund (Expected to convert to an ETF in October)
• Horizons AlphaPro Fiera Tactical Bond Fund (Will convert to an ETF in 2010)

Actively managed ETFs do look like the next growth area within the ETF industry with some mutual funds looking to enter the space. But the big question is whether the shareholders of these mutual funds would allow it to happen because the profitability would decline with lower-fee products.

Source:GlobeandMail