Jumping into the billion dollar exchange traded fund (ETF) industry, Dreyfus has filed with the Securities and Exchange Commission (SEC) to launch its first funds, which will be actively managed.
The proposed funds may invest in equities or fixed-income securities, or both. They may also focus on the domestic or foreign markets, writes Joe Morris for Ignites. The first funds will be aimed at providing capital growth by investing in diversified portfolios of equity securities of non-U.S. companies in developed and emerging markets. [Active ETFs: Why Low Volume Doesn’t Mean Illiquid.]
The filing also notes other possible themes, including repurchase agreements, government securities, cash and foreign currency, commodities, indexed and inverse floating rate securities, mortgage- and asset-backed securities, convertible instruments, rights, warrants, REITs and shares of other ETFs and exchange traded notes (ETNs), the filing says.
The company will not be using swaps, options or futures, obviating any delays that could come from the SEC’s derivatives review. [Derivatives-Based ETFs Await SEC Decision.]
Dreyfus has already partnered with WisdomTree in providing eight foreign-currency themed ETFs. [Euro ETFs and Jim Rogers: Time to Buy?]
Other firms looking to break into the ETF biz include: JPMorgan Chase, which filed in March to launch active and index-based ETFs. Eaton Vance filed in March to launch active funds. Legg Mason, filed in February to launch active ETFs.
For more information on new ETFs, visit our new ETFs category.
Max Chen contributed to this article.
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.