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.]