Hancock the Latest Big Name to File for Active ETFs

December 22, 2009 at 3:00 pm by Tom Lydon      Bookmark and Share

110_F_310072_m7UIakYq9oyHZMoyHZ1BTmasXq8I6l This year has seen its fair share of big-name entrants into the world of exchange traded funds (ETFs): Jefferies, Guggenheim, BlackRock. Now you can add one more to this growing list: John Hancock Funds.

Hancock is expected to file with the Securities and Exchange Commission (SEC) for an actively managed ETF that will mirror the firm’s Lifestyle Balanced Portfolio. The portfolio is a fund of funds, investing in about 60% equity and 40% fixed-income, reports Luisa Beltran for Ignites.

Earlier this year, Hancock filed with the SEC to offer passive ETFs. That application is still pending.

The number of names in line to offer actively managed ETFs seems to get longer by the day. Vanguard filed earlier this year to offer an actively managed TIPs ETF. [Details are here.] T. Rowe Price has also recently filed for some funds.

Plenty of other providers offer actively managed ETFs of their own, including PIMCO, PowerShares and Grail Advisors. [More descriptions about new funds is here.]

Investors are starting to realize the benefits of active management in an ETF form — competitive pricing with mutual funds, combined with the intraday liquidity and transparency that mutual funds lack. Hancock will have to be strategic about what it offers. Investors and advisors are not only going to look for novelty, but they’ll want alpha if they’re buying an actively managed fund. [The filings for new ETFs is gaining momentum as the market turns.]

For more stories about new ETFs, visit our new ETFs category.

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