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.
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