The latest provider to join the actively managed exchange traded fund (ETF) race is BlackRock, as regulators say they can issue a “series of certain actively managed open-end management investment companies” through purchases and sales of large blocks called creation units, says Murray Coleman for Barrons.
BlackRock has plans for rolling out an actively managed broad based fund, using a fund of funds approach with already trading iShares ETFs. Joe Morris of Ignites explains the approach will give a daily disclosing of the product, giving them total transparency.
PIMCO has been the only successful provider so far to hit the mark with an actively managed ETF. The PIMCO Enhanced Short Maturity Strategy Fund (NYSEArca: MINT) became the first actively managed ETF to break the $1 billion milestone, and the ETF has about $1.18 billion in assets now. PIMCO’s MINT ETF is a money-market alternative for investors who are seeking a way to store excess cash without the prospect of minimal returns offered by Treasuries and money-market funds. [PIMCO ETF Hits $1 Billion With Active Success.]
Tisha Guerrero contributed to this article.