Eaton Vance has purchased the assets of Managed ETFs LLC, a company co-founded by Gary Gastineau, who created a new way of trading that could ultimately enable actively managed exchange traded funds (ETFs) to keep trades confidential.
The so-called “NAV-based trading” is a trading mechanism for ETFs that would keep portfolios confidential, but give enough information to market makers so they can keep the share price in line with the net asset value (NAV). Gastineau is also the principal at ETF Consultants and has been behind the formulation of the new form of trading, reports Shishir Nigam for Active ETFs. [New ETF Pairs High Yield With Active Management.]
NAV-based trading could alter the actively managed ETF space considerably if it catches on. Portfolio confidentiality has been a bigger issue to some would-be active ETF providers than others, but eliminating the issue entirely could help encourage those who don’t want transparency to file for and launch their own active ETFs. [Actively-Managed ETFs: The Jury Is Still Out.]
Eaton Vance clearly doesn’t want to miss the boat, and this move demonstrates the firm’s commitment to active management.
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.