This year has seen its fair share of big-name entrants into the world of exchange traded funds (ETFs): Jefferies, Guggenheim, BlackRock. Now you can add one more to this growing list: John Hancock Funds.
Hancock is expected to file with the Securities and Exchange Commission (SEC) for an actively managed ETF that will mirror the firm’s Lifestyle Balanced Portfolio. The portfolio is a fund of funds, investing in about 60% equity and 40% fixed-income, reports Luisa Beltran for Ignites.
Earlier this year, Hancock filed with the SEC to offer passive ETFs. That application is still pending.
The number of names in line to offer actively managed ETFs seems to get longer by the day. Vanguard filed earlier this year to offer an actively managed TIPs ETF. [Details are here.] T. Rowe Price has also recently filed for some funds.
Plenty of other providers offer actively managed ETFs of their own, including PIMCO, PowerShares and Grail Advisors. [More descriptions about new funds is here.]
Investors are starting to realize the benefits of active management in an ETF form — competitive pricing with mutual funds, combined with the intraday liquidity and transparency that mutual funds lack. Hancock will have to be strategic about what it offers. Investors and advisors are not only going to look for novelty, but they’ll want alpha if they’re buying an actively managed fund. [The filings for new ETFs is gaining momentum as the market turns.]
For more stories about new ETFs, visit our new ETFs category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.