Money managers are coming closer to launching non-transparent actively managed exchange traded funds, with the Securities and Exchange Commission looking over requests from both providers and market exchanges.
Currently, the SEC requires all ETFs, active and passive, to disclose holdings on a daily basis, which has dissuaded some active managers from launching an ETF and revealing their secret sauce to potential front runners. Action on the non-transparent active front could prove to be a major boost for actively managed ETFs in the coming years.
In addition to BOND and SRLN, other successful actively managed ETFs include the AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD), which topped $1 billion in assets under management earlier this year. The WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD) has almost $850 million in assets while the First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP) has $770 million in AUM.
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of BOND and HYLD.