Add Putnam Investments to the growing list of names of companies toying with the idea of launching actively managed exchange traded funds (ETFs). While no timetable was given, analysis of the pros and cons is being done as we write.
As actively managed ETFs become more popular, the investment company wants to be a part of it. Jessica Toonkel Marquez for InvestmentNews reports that similarly, T. Rowe Price Group Inc. has filed with the Securities and Exchange Commission (SEC) to launch actively managed ETFs. (Read about the filing here).
Other firms that have taken interest in the actively managed ETF area include Vanguard, PIMCO, and BlackRock’s iShares. (Vanguard’s filing is explained here).
Actively managed ETFs are going to be closely watched by advisors and investors as they’re rolled out. Mainly, they’ll want to see if there’s alpha generated. If it is, these funds could catch on, especially since they have some advantages mutual funds lack. This includes transparency, low-cost and intraday liquidity. (Active ETFs catch on in unexpected ways).
For more stories about active ETFs, visit our actively managed ETF 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.