However, activity is stirring as more providers file with the SEC. The recent wave of active ETF interest are testing new regulatory waters as asset managers seek out non-transparent offerings as a way to protect their secret sauce and mitigate the effects of front running in the highly transparent ETF structure.
Earlier this year, the New York Stock Exchange’s part company asked the SEC for permission to list non-transparent active ETFs, and Nasdaq’s parent company followed suit a few weeks later, seeking to list and trade Eaton Vance’s proposed products. Now, we play the waiting game, with the SEC’s division of markets and trading scrutinizing the requests. [Waiting on the SEC to Approve Non-Transparent Active ETFs]
For more information on active ETFs, visit our actively managed ETFs category.
For a complete copy of the white paper on active ETFs, visit SEI’s Knowledge Center Archive.