- Among the largest asset managers offering active strategies in both open-end funds and ETFs, the majority allocate mutual fund assets to their “clone” or “cousin” ETF strategies with expenses waived.
- This tactic reduces cash drag for the open-end fund shareholders while preserving liquidity. It also boosts the capital markets profile for the ETF and potentially tightens spreads.
- Asset managers utilize this approach to benefit shareholders in both their open-end funds and ETFs simultaneously.
