The idea that investment advisors could use ETFs to execute portfolio decisions has been around a while. But the launch of Barclays Wealth ETF Tactical Allocation BETA Portfolios has given rise to a new round of talk about their role in the financial advisory industry.

The new products are basically separately managed accounts consisting of passive ETFs and ETNs. The target audience is investors with at least $10 million in assets. This will be seen by some as confirmation of the benefits of passive, low cost products. While the allocation will be determined actively, the means by which this allocation will take place will involve ETFs.

But TheStreet.com notes, "the hotly anticipated, actively managed ETF products have had trouble gaining traction. Investors accustomed to using low-priced ETFs to target specific sectors and themes have been slow to adopt higher-priced active strategies that are often less transparent  in their objectives and defined in scope." There's a difference between actively managed ETFs and an SMA programs that uses ETFs. This highlights the marketing challenge. It's unclear that the sluggish response to active ETFs will ensnare SMA programs such as Barclays Wealth. 

For more:
- here's the article from TheStreet.com
- here's a Reuters article

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