One persistent challenge for active ETFs is providing the necessary disclosure for the fund to trade properly. [Disclosure Issues for Active ETFs]
“It’s a question of when, not if, active ETFs will be part of the landscape,” said Tony Rochte, head of the North American intermediary business group at SSgA. [Index ETFs Still Rule]
Separately, State Street has filed to launch a pair of new fixed-income ETFs. The company is readying a breakeven inflation ETF and a commercial paper fund that strips out the financial sector, according to the filing.
The “breakeven” rate of inflation is the level of inflation required for Treasury Inflation Protected Securities (TIPS) to approximate the performance of U.S. Treasury securities with equivalent duration, according to the filing. The tracking index takes long positions in TIPS and shorts traditional Treasury bonds.
Full disclosure: Tom Lydon’s clients own SPY.