Note: This article is courtesy of Iris.xyz

By Tom Lydon

The exchange traded fund (ETF) managed portfolio segment could help provide the next growth spurt in the ETF industry as multi-asset managers increase adoption of ETFs, according to a BlackRock report.

I met with Daniel Gamba, Head of iShares U.S. Institutional Business at BlackRock , in April during the Nasdaq closing bell ringing. He shared the results on their recent research regarding ETF Managed Portfolio assets and prospects for future growth.

BlackRock interviewed multi-asset managers at over 40 asset management firms, which included asset managers, boutique asset managers, investment officers/consultants and retail insurers, and found that ETF managed portfolios and multi-asset strategies make up a much larger, and faster growing part of the asset management industry than previously believed.

They found that ETF managed portfolios now hold about $350 billion in assets globally, including $60 billion in separately managed accounts of retail model portfolios, and $290 billion in variable insurance trusts, mutual funds, collective trust funds, institutional separate accounts and UCITS.

Looking ahead, BlackRock projects that ETF managed portfolios could double to over $700 billion by 2020 as institutional investors increase allocations to these strategies.

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