Active ETFs have the investing world’s attention, creating an opportunity for issuers to drive flows with smart media relations strategies.
According to Morningstar Direct, actively-managed ETFs boasted $444 billion in assets as of October 2023, nearly tripling their market share in three years. The SEC’s passage of the ETF rule in 2019 and the recent attractiveness of mutual fund conversions kickstarted this wave of growth. It’s true that passive ETFs will always have a strong role in the marketplace, but the passive market is dominated by institutional heavyweights. In the arena of active funds, there is still plenty of room for ETF issuers to compete and flourish.
The success of a media relations campaign for an active ETF hinges on the expertise of the portfolio manager, and the fund’s overall investment thesis. These elements are certainly true for passive funds as well, but a passive manager may rely on index providers that rebalance a portfolio once or twice a year. An active manager, by definition, takes a more prominent role in their fund. Their expertise should be the central through-line for any media relations and content strategy campaigns.
Show the ‘why’ behind your fund
To demonstrate your expertise and the strength of your investment thesis, look for opportunities to connect them to individual holdings. For example, tech high-flyers like Nvidia, Tesla, and Microsoft have gained mainstream attention because of the rise of generative AI. This creates media openings well beyond the realm of industry-specific publications, allowing a savvy fund manager to discuss holdings in those companies.
Use these opportunities to explain the why behind your investing thesis. For example, Nuveen’s fund manager stood alone in avoiding the fallout from Kraft Heinz’s sudden decline in 2019, because Nuveen’s due diligence revealed weaknesses in corporate governance. When KHC took a beating, Nuveen parlayed their foresight into significant media coverage.
Act fast – the news waits for no one
Your fund manager must be willing to move fast to capture short-fuse media… but in our experience, the managers of active funds are already deeply plugged into the markets and relevant news stories. Zacks Investment Management has two active ETFs currently on the market, including the Zacks Earnings Consistent Portfolio (ZECP). ZECP invests in companies that exhibit a track record of moving through recessionary periods with minimal impact on aggregate earnings growth relative to the overall equity market. Senior Client Portfolio Manager Brian Mulberry remains on top of news tied to the underlying holdings, resulting in coverage in outlets like the Financial Times, The Wall Street Journal and Bloomberg. We don’t often see this level of opportunity with passive managers.
Reporters at these outlets move at a breakneck pace, and contend with inboxes overflowing with other financial experts vying for their attention. A PR and media relations team with strong relationships in place can help an ETF issuer cut to the front of the line – but from there, it’s up to the fund manager’s ability to move fast and follow through with smart, quotable analysis.
Gregory FCA’s Financial Services teams have helped launch more than 40 ETF brands. If you want to know how a full-service public relations campaign might boost the profile of your actively managed fund, we’re always willing to chat.