@article {Mackintosh47, author = {Phil Mackintosh}, title = {An Evolution of ETFs}, volume = {2007}, number = {1}, pages = {47--60}, year = {2007}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Around a decade ago, ETFs were mostly a novelty for investors. But in the past 10 years, ETFs have seen extraordinary rates of growth, and have expanded into more asset classes and sub-categories. We think 2006 provided a turning point, or evolution, of ETFs{\textemdash}from a cheaper beta product to a viable alpha tool. Many of the ETFs launched in 2006 closed previous gaps in asset allocation. It{\textquoteright}s now possible to build a multi-asset, diversified, tilted portfolio{\textemdash}with a currency overlay{\textemdash}just using ETFs. This article highlights the new wealth of choices for ETF investors, and discusses how investors could build a multi-asset portfolio including style, country, and sector tilts using ETFs. It also highlights recent ETF innovations covering different asset classes, allocating assets into commodity, currency, debt and equity; active strategies like currency harvesting, fundamental and quant stock selection or leveraged up and downside strategies; style and segment selection such as building positions in smaller, more customized industries and investment styles; and country selection and investing more selectively in overseas companies.}, URL = {https://guides.pm-research.com/content/2007/1/47}, eprint = {https://guides.pm-research.com/content/2007/1/47.full.pdf}, journal = {ETFs and Indexing} }