Some professional investors say exchange-traded funds allow them to provide better retirement solutions for their clients than mutual funds traditionally have.
Morningstar’s Christine Benz moderated a panel at the Morningstar ETF Conference addressing this topic. Panelists Will McGough from Stadion, Bob Smith from Sage Advisory, and Scott Kubie from CLS Investments agreed that ETFs allow them to more effectively manage risk.
ETFs also provide investors with access to markets that were heretofore unavailable, he noted. For instance, Kubie can now deliver currency-hedging strategies to clients thanks to ETFs.