As speculated would happen around the time that BlackRock acquired the world’s largest exchange traded fund (ETF) provider iShares, the firm has filed to expand its line of actively managed ETFs beyond the one that’s currently available.
With this filing, iShares has made clear its intentions to jump into the actively managed ETF space with both feet. The provider has one actively managed fund now – iShares Diversified Alternatives Trust (NYSEArca: ALT) – which has a hedge-fund like strategy, reports Shishir Nigam for Active ETFs in Focus. [Active Management: Ready to Take Flight?]
When iShares’ line of actively managed fixed-income and equity ETFs launches, they will add further heft to a growing corner of the ETF space already dotted by big names either planning to launch their own funds or already trading them. This includes PIMCO, Goldman Sachs, JP Morgan and Eaton Vance.
This filing makes sense for BlackRock. If they get the approval they need for these funds, they can customize each to a specific strategy. [Active ETF Fact and Fiction.]
The active ETF movement is alive and well and we’ll continue to see new entrants dot the space, especially when it comes to alternative investing. But as always, the key will be whether the active ETF launched can produce the desired results.
For more stories about actively managed ETFs, visit our 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.