BlackRock’s iShares has filed with the Securities and Exchange Commission to launch two active U.S. equity ETFs, but the money manager has yet to act on any of registered active products.
According to a SEC filing, the iShares Enhanced U.S. Large-Cap ETF (NYSEArca: IELG) will try to generate long-term capital appreciation through holding U.S. large-cap securities based on quantitative investment characteristics, such as earnings variability, leverage, price-to-book ratio and market capitalization. IELG has a 0.18% expense ratio.
Sector allocations include consumer discretionary, financial, heatlhcare and utilities, but it may change over time.
According to a separate SEC filing, the iShares Enhanced U.S. Small-Cap ETF (NYSEArca: IESM) will try to generate long-term capital appreciation through tracking U.S. small-cap stocks based on quantitative investment characteristics, such as earnings variability, leverage, price-to-book ratio and market capitalization.
Sector allocations include consumer discretionary, consumer staples, financial and utilities.
While iShares has filed a number of active ETFs over recent years, including quasi-active equities, currencies, short-duration bonds and corporate bonds, the fund sponsor has not listed any of its registered products, writes Jackie Noblett for Ignites. [Active vs. Passive Debate Spills Into ETFs]
The ETF provider is not alone in this regard. Mutual fund managers Legg Mason and Federated have both received exemptive relief to launch active ETFs, but they are quietly sitting on the sidelines.