Steven Cheung, Director, Specialist Sales, ETFs, Asia Pacific ex Japan at Fidelity International, joins ETF TV’s Deborah Fuhr todiscuss how Active ETFs Drive Growth in Asia-Pacific as Investors Seek More Targeted Outcomes on ETF TV.
Fidelity International says demand for diversification, income and risk management is accelerating adoption of active ETFs across the region.
Active ETFs are becoming an increasingly important portfolio tool for investors across Asia-Pacific as they seek to diversify away from concentrated market-cap-weighted indices and address geopolitical, credit and market risks.
Speaking on ETF TV with Deborah Fuhr, producer at ETF TV, Steven Cheung, Director, Specialist Sales, ETFs, APAC ex Japan at Fidelity International, said active ETFs are increasingly being used alongside passive ETFs rather thanreplacing them.
"Active ETFs and passive ETFs are complements, not substitutes," said Cheung. "Investors can use passive ETFs as a core holding while active ETFs can be used for alpha generation, income opportunities and managing marketinefficiencies."
Cheung noted that many investors are looking beyond broad beta exposure and are increasingly seeking more targeted allocations and specific investment outcomes.
The opportunity is particularly significant in Asia-Pacific, where the ETF market has grown to approximately US$2.7 trillion and demand from both institutional and wealth-management channels continues to increase.
"Wealth investors want more than traditional market exposure," said Cheung. "They are looking for higher conviction strategies and outcome-oriented solutions. Active ETFs combine the benefits of active management with theefficiency and transparency of the ETF wrapper."
As investors look for diversification, income and greater precision in their portfolios, active ETFs are becoming an increasingly important part of the investment toolkit across Asia-Pacific.
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