The actively managed exchange traded fund space is slowly gaining momentum, with BlackRock’s iShares filing for the Securities and Exchange Commission’s approval to launch three active equity ETFs that try to limit the effects of market volatility.
According to the filing, the iShares Strategic Beta U.S. Small-Cap Fund will hold at least 80% of its net assets in equity securities from U.S. small-cap issuers and will not try to replicate the performance of a specific index. Sector holdings will include consumer discretionary, financial and industrial components. [Active ETFs Seen Taking Off in 2012]
In another filing, the iShares Strategic Beta Developed International Small-Cap Fund will allocate at least 80% of its net assets in equity securities of international small-cap issuers and does not try to reflect the performance of a specific index. Sector allocations will include consumer discretionary, industrial and material holdings.
Lastly, according to a separate filing, the iShares Strategic Beta U.S. Large-Cap Fund will invest at least 80% of its net assets in equity securities of U.S. large-cap issuers and will not mirror the performance of a specific index. Sector allocations will include consumer discretionary, energy and financial companies.
All three funds will select component holdings based on high quality earnings, low relative valuations and smaller relative market-cap.