T. Rowe Price is the latest provider to enter into the exchange traded fund(ETF) industry gamut. Is this the beginning of a trend within the industry?
Baltimore-based T. Rowe, a fund firm with $366 billion in assets under management, is seeking to roll out actively managed ETFs, according to an SEC filing. Luisa Beltran for Ignites reports that the fund firm is expected to wait nine to 12 months before securing SEC approval to launch the ETFs, a person familiar with the process says. (Read about the growing industry).
Their first ETF will invest in domestic fixed-income securities, but the provider didn’t say how many ETFs it would ultimately offer.
This marks the entry of yet another important name getting into ETFs. The last year has scene the likes of Charles Schwab and PIMCO enter ETFs, and it’s given the industry a real boost. T. Rowe Price will be no different – it has been a proven active mutual fund manager that is backed by a good brand and a well-known name. That should translate positively as it makes the move into ETFs. (Active ETFs catch on).
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. 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.