The issue of transparency has been one of the primary concerns of active managers of ETFs. Current regulations require active ETFs to provide daily disclosure of holdings with a one-day lag. This means that any active manager using a unique investment strategy will be forced to reveal their strategies to the wider public, which could lead to other managers imitating the change in holdings, reports Shishir Nigram for Active ETFs. [Alliance Files for Actively Managed ETFs.]
Whatever the issues left to iron out may be, if active ETFs prove that they can deliver on performance, investors may come calling. Investors may also simply warm up to the fact that while the active management structure resembles the mutual fund model, active ETFs are competitively priced and have intraday liquidity, as well.
For more stories about actively managed ETFs, visit our actively managed category.
Tisha Guerrero contributed to this article.