The Securities and Exchange Commission (SEC) has cleared another step in the path to an actively managed exchange traded fund (ETF).

On Friday, reports Diya Gullapalli for the Wall Street Journal, gave "close-to-final" approval to Invesco Ltd.’s PowerShares Capital Management unit to take a "mix-and-match" approach to investing. That is, buying securities actively picked by a money manager as opposed to simply tracking an index as traditional ETFs do.

Barclays Global Investors and Bear Stearns, who also have actively managed funds in registration, are expected to get similar notices as early as today.

Final approval will take a few more steps, but the bottom line is that the new funds could begin trading in as little as a month.

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.

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