The Securities and Exchange Commission may be giving two exchange traded fund (ETF) providers a run of opposition, as the filing for active funds from two providers is scrutinized.

Christopher Condon for BusinessWeek reports that the BlackRock and Vanguard are seeking approval for actively run ETFs, where managers select holdings, some of which would remain undisclosed. This would allow them to compete better for the $7.5 trillion managed by stock and bond pickers. [How to Avoid Following the Herd.]

The SEC feels that the problem is not about working out the details of a complex product, rather, it is about the disruption of  the process that keeps a fund’s per-share net asset value and share price closely aligned. [New Fee and Disclosure Rules Other Ways The Sec is laying down a high hand.]

Allowing funds to disclose less may help firms attract more assets if it clears the path for star mutual-fund managers to offer ETF versions of their funds.

For more stories about ETFs, visit our ETF 101 category.

Tisha Guerrero 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.