Morningstar - Q3 2024 - 4

Contributors
Morningstar Magazine
Volume 16, Issue 3
Bryan Armour
This issue features a survey of the expanding
landscape of active exchange-traded funds
co-written by Bryan Armour ( " Active ETFs Riding
High, " Page 23). As director of passive strategies
at Morningstar Research Services LLC, Armour
keeps a weather eye on ETF trends. (Get his take
on spot ether ETFs on Page 16.)
" Active ETFs do a good job of offering what mutual
funds do at a lower cost and in a more taxefficient
way, " Armour says. But he notes that
outflows from actively managed mutual
funds have largely been directed to passive ETFs.
So far in 2024, though, active ETFs have gotten
nearly one third of all ETF flows. Armour
says that popular active ETFs tends to be in niche
areas: " The core has been commodified, so
there's been a proliferation of satellite strategies,
such as options-based ETFs. Some of these
are close to jumping the shark. "
Tony Thorn
Manager research analyst Tony Thorn also
contributes to the Morningstar Direct blog, which
shows clients how Morningstar analysts use the
product in their own research. Thorn first joined
Morningstar as a member of Direct's support team,
and he says answering all those calls and emails
gave him insights that he draws on today. " It's
Getting Harder for Large-Cap Funds to Stand Out "
(Page 42) adapts a recent blog post. " What piqued
my interest was all the talk of index concentration, "
Thorn says. " I looked at large-growth funds
and noticed that active share had decreased. But
I was surprised to see that tracking error and
performance had actually become more distinctive.
There's the 'Magnificent Seven' and everything
else, but what you do with everything else can
make quite a difference. "
Vicki Ling
To convey the essence of active investing,
cover illustrator Vicki Ling turned to the image of
a surfer. " The waves, with their peaks and
troughs, represent the highs and lows of market
performance. The surfer navigates these
fluctuations, using skill and insight to capitalize on
opportunities and mitigate risks, " she says. Ling
lives in the Chicago area. Her recent clients
include The New York Times and Dwell magazine.
This is her second Morningstar cover.
4
Morningstar Q3 2024
Editor-in-Chief Jerry Kerns
Managing Editor Laura Lallos
Editorial Board Bryan Armour, Hortense Bioy, Wing Chan, Adam Fleck,
Charles Gross, Michael Holt, Thomas M. Idzorek, Dan Kemp, Alec Lucas,
Alex Morozov, Don Phillips, Jeffrey Ptak, Katie Rushkewicz Reichert,
Daniel Rohr, Janet Yang Rohr, Jeffrey Stafford, Timothy Strauts,
Lorraine Tan
Contributors Bella Albrecht, Sanjay Arya, Valerio Baselli, Christine Benz,
Katie Binns, Zachary Evens, Emelia Fredlick, Kongkon Gogoi, Ryan Jackson,
Eric Jacobson, Harsh Jain, Ben Johnson, Jason Kephart, Russel Kinnel,
Ramanand Kothari, Danielle Labotka, Samantha Lamas, Dan Lefkovitz,
Adam Millson, Brian Moriarty, Paul Olmsted, Dan Romanoff, Sara Silano,
Kyle Stanford, Lindsey Stewart, Dan Su, Elizabeth Templeton, Tony Thorn,
Greggory Warren, Stephen Welch, James Xiong, Albert Zhao
Art Director Alex Skoirchet
Designer Paul Zdon
Illustrator Vicki Ling
Photographers Leonardo Carrizo, Matthew Gilson, Doug Levy, Sarah Rice
Copy Editors Mike Eiler, Sylvia Hauser
Publisher Sheila Berleman
Director of Advertising Sales Stuart Roge
Regional Sales Directors Dan Atkinson, Emily Martin, Lisa Turner
Morningstar, Inc.
CEO Kunal Kapoor
Managing Director, Design David Williams
Editor-in-Chief Adley Bowden
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Morningstar - Q3 2024

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