The actively managed exchange traded fund (ETF) could soon have a new player, as iShares may enter into this fairly new category of fund under the new providers’ influence. The previous providers of the iShares family of ETFs never saw a need for actively managed ETFs, therefore, they never got the ball rolling for an actively managed ETF. The need for them was not clear in the marketplace and there was no easy way to provide them, reports David Hoffman for Investment News.
BlackRock is finalizing a deal to be the new provider for the iShares lineup. They were already considering an actively managed ETF before the acquisition of the established family of funds. According to executives, they will put this energy into the iShares line and enter into the market from this angle. BlackRock executives have no comment about their plans for iShares.
BlackRock is already one of the biggest active managers in the world and their strong belief in this strategy could be just what the ETF industry needs.
For more stories on active management, visit our actively managed category.
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.