While it appears that the level of attraction for fund issuers to non-transparent vehicles is high, it remains to be seen whether that will carry over to investors, many of which have embraced the daily disclosures offered by ETFs. Of course, it is far from a guarantee that the SEC will even approve these instruments.
Some mutual fund companies that are entering the ETF business are taking a different approach, noting that daily disclosure is not likely to be a detriment to a fund’s performance. Calamos Investments, the Chicago-based mutual fund issuer, said as much earlier this month when it introduced the actively managed Calamos Focus Growth ETF (NasdaqGM: CFGE). [Calamos Active ETF Could be a Winner]
The Calamos Focus Growth ETF is the ETF answer to the firm’s Calamos Focus Growth Mutual Fund (CBCAX). A brief visit to the Calamos Web site allows investors to see CFGE’s holdings as of July 28. Apple (NasdaqGS: AAPL), Google (NasdaqGS: GOOGL) and Facebook (NasdaqGS: FB) combine for 21.2% of the new ETF’s weight.
Capital Research, the parent company of American Funds, manages eight of the 20 largest actively managed mutual funds, according to the Journal.
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple and Facebook.