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Morningstar Advisor Magazine October/November 2009 Issue
Investing > 10 Questions
ETFs: The Next Chapter
Trend in the ETF industry you'd most like to see.
Noel Archard: Expansion into interesting venues such as the 401(k) market.

Rick Ferri: Lower management fees on new ETFs, because fees continue to creep higher.

Jim Wiandt: Lower fees as scale grows.

Trend you'd most like to see end.
Archard: Too many folks boil their choice of ETF down to one metric.

Ferri: Fund providers labeling active-management strategies as "indexes."

Wiandt: The throw-it-on-the-wall-and-see-what-sticks mode of product development.

Actively managed ETFs: Gimmick or idea whose time has come?
Archard: Initial forays are a good evolutionary first step, but we're not there yet.

Ferri: Most ETFs launched since 2003 follow active management strategies. The time has come to drop the indexing mask and call these strategies by what they are.

Wiandt: If the tax- and cost-efficient structure of ETFs works for index funds, it works doubly for active management.

Next big thing in ETF investing.
Archard: Something my teams are working on, so I can't go into details!

Ferri: ETF companies closing funds that have not reached a profitable asset level.

Wiandt: ETNs and ETFs packaging institutional strategies and scale for retail investors.
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