Active ETFs have the potential to provide interesting advantages for our clients.
Structural strengths
Structural strengths and enhanced product choice have elevated ETFs as vehicle of choice for investors, while regulatory progress and efficient capital markets have honed the structure as a tool for active Asset Managers.
Liquidity and Ease of Access
ETF shareholders may enjoy improved liquidity and ease of access, while Managers benefit from operational streamline and distribution flexibility.
Easy to Trade
Investors can buy and sell ETF shares during the trading day at prevailing market prices. Conversely, most mutual funds trade at the end of the day at a specified NAV. Additionally, investors can place a variety of orders (e.g., limit orders or stop-loss orders) that can't be placed with mutual funds.
Transparency
Most ETFs are required to publish their holdings daily, offering greater visibility when compared to mutual funds and separately managed accounts. However, some ETFs are non-transparent or semi-transparent, allowing them to publish holdings in a delayed fashion. The Brown Advisory Active ETFs publish holdings daily on the website.
Tax Efficiency
Through the creation and redemption process, ETFs may reduce annual capital gains distributions relative to mutual funds.
“As our institutional business continues to grow rapidly, we are launching this product to serve clients' evolving needs and investment goals. This fund, the first of multiple ETF offerings, will satisfy demand and provide clients with a tax-efficient, transparent, and liquid investment vehicle while still offering exposure to a broad range of securities.”
CHRIS BARTLETT
HEAD OF INSTITUTIONAL BUSINESS
ETFs can offer investors unique benefits through the interplay of primary and secondary markets, ensuring access, liquidity, and fair pricing.
Understanding market risk is key for investors to ensure an ETF is meeting its objectives. By examining key risk metrics investors can determine if an ETF is performing its intended role and decide whether to hold or sell.
ETFs offer a range of benefits that can make them an attractive investment option. To help ensure investors own the ETF that best fits their objectives, understanding the benefits of ETFs is key.
ETFs offer a range of benefits that can make them an attractive investment option. To help ensure investors own the ETF that best fits their objectives, understanding the benefits of ETFs is key.
All investments involve risk, including possible loss of principal. Please see each product's web page for specific details regarding investment objective, risks, performance, and other important information. Review this information carefully before you make any investment decision.
Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Click here for a current prospectus. Please read and consider it carefully before investing. You may obtain a hardcopy of the prospectus by calling 1-877-876-6383.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular. This information is not intended to provide legal and/or tax advice. Please consult your tax/financial adviser for further information.
The views expressed are those of the author and Brown Advisory as of the date referenced and are subject to change at any time based on market or other conditions. These views are for informational purposes only and is not individually tailored for or directed to any particular client or prospective client and are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. Past performance is not a guarantee of future performance and you may not get back the amount invested. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data.
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Brown Advisory LLC serves as the investment adviser to the Funds. The Adviser’s principal place of business is 901 South Bond Street, Suite 400, Baltimore, Maryland 21231. The Adviser is a wholly owned subsidiary of Brown Advisory Management, LLC, a Maryland limited liability company. Brown Advisory Management, LLC is controlled by Brown Advisory Incorporated, a holding company incorporated under the laws of Maryland in 1998. The Adviser and its affiliates have provided investment advisory and management services to clients for over 25 years. Vident Asset Management, a Delaware limited liability company located at 1125 Sanctuary Pkwy., Suite 515, Alpharetta, Georgia 30009, serves as the sub-adviser to the Funds.
The Fund is offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
The Brown Advisory Exchange Traded Funds (ETFs) are distributed by SEI Investments Distribution Co. (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456. Funds are managed by Brown Advisory Inc. SIDCO is not affiliated with Brown Advisory Inc.