“There is a tremendous amount of potential there in terms of the transformative effect this could have on how funds are distributed,” Ben Johnson, director of passive-funds research at Morningstar Inc., said in the article.
Nevertheless, the SEC will be reviewing the process as there are many kinks to still work out.
“It could be perhaps a year before they come out in the marketplace,” Browne added.
There are 62 actively managed ETFs on the market, with $14.5 billion in assets, according to XTF. In comaprison, there are 1,506 U.S.-listed ETFs with almost $1.6 trillion in assets.
For more information on active ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.