The actively managed exchange traded fund space has yet to blossom, but large fund providers are beginning to make headway, with the latest firm, States Street Global Advisors, home to the SPDR ETF line, announcing its intent to launch active funds soon.

SSgA, the third-largest U.S. ETF provider, will launch new actively managed funds, distribute the ETFs and partner with other asset managers, reports Jessica Toonkel for Reuters.

Jim Ross, head of SSgA’s ETF business, told Reuters that many managers that work with the provider want to get into the actively managed ETF business, but lack the distribution methods or SEC approval.

“This allows us have a bigger presence in the active space and we have a broad platform to partner with firms that do not have the capability to do this themselves,” Ross said in the Reuters article.

SSgA wants to launch three active ETFs by March, including one based on physical assets, another covering equities and fixed income, and one that holds global allocations. Additionally, the provider will launch an actively managed bank loan ETF later this year.

This move will allow State Street, which has a small presence in the active space, to gain a foothold in an area expected to expand over the next couple of years. If you look at the index-based landscape, it is full. In order to be competitive, this is where the growth could be over the next three to five years.

For more information on active funds, visit our actively managed ETFs category.

Max Chen 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.