Joining a growing list of actively managed exchange traded fund (ETF) providers, Alliance stepped up to say it, too, would nix the use of derivatives in any upcoming active funds.

Regulators said earlier this year that they would scrutinize more closely how derivatives are used, and any active ETFs that do make use of them will likely remain in registration until the investigation is complete.

Olivier Ludwig for Index Universe says that Alliance joins a list of other providers who have said they won’t use derivatives, such as Van Eck, JP Morgan, Guggenheim, AdvisorShares and Legg Mason.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.

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