Some changes on regulations for exchange traded funds (ETFs) will soon be made by the Securities and Exchange Commission (SEC). The biggest steps toward change will be to grant approval for a version of the first actively managed ETF. A launch date has not been set. Many firms have pursued actively managed ETFs, using an actively managed portfolio that doesn’t seek to replicate the performance of any particular index. Edward Hayes of CCH WallStreet reports the biggest doubts the regulator expressed were important issues like holdings disclosure and pricing. To counter the concern, some company’s filed for actively managed ETFs that are transparent. The SEC won’t be voting about the rule streamlining process until June.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.