DFUV - Russell Investments says active management is attractive in 2023

2023-04-26 09:18:23 ET

Russell Investments believes that actively managed portfolios are the attractive choice in 2023 as markets look to navigate an investment landscape of economic uncertainty. The financial firm argued that an actively managed stance can be beneficial for both the fixed income and equity markets, giving the current interest rate situation and the risk of market dislocation.

“We believe fixed income markets present fundamental advantages that enable active managers to outperform benchmarks," the company stated in an investor note. "These include market inefficiencies, index rules and reconstitutions, participant motivation, and trading inefficiencies."

For equities, Russell Investments added : "We think global small cap and emerging markets managers unlock additional opportunities in a multi-manager approach by operating in markets with favorable dynamics and diverse opportunity sets."

For investors that don't feel comfortable trading on their own by still want to take advantage of an actively managed approach, there are just over 1,000 actively managed ETFs that provide this opportunity. The five largest actively managed funds include:

• JPMorgan Ultra-Short Income ETF ( JPST )
• JPMorgan Equity Premium Income ETF ( JEPI )
• Dimensional U.S. Core Equity 2 ETF ( DFAC )
• Dimensional US Marketwide Value ETF ( DFUV )
• PIMCO Enhanced Short Maturity Active ETF ( MINT )

In broader financial news, the Nasdaq Composite ( COMP.IND ), S&P 500 ( SP500 ), and Dow ( DJI ) all look to open up trading into the green on Wednesday as growth names outperformed.

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