The simplified listing process for actively managed ETFs could be a boon for smaller fund managers seeking an entry into the ETF space as a means to quickly attract assets through the easy-to-use and efficient investment vehicle.
While the ETF industry first started up a little over two decades ago, it took 15 years before the first actively managed ETF hit the market, and active ETFs still only make up a fraction of the overall U.S. ETF industry.
There are 1,945 U.S.-listed exchange traded products with $2.375 trillion in assets under management, according to XTF data. However, there are only 149 actively managed U.S.-listed ETPs with $26.3 billion in assets.
“The NYSE is committed to reducing complexity in US markets to benefit issuers, market participants and investors,” Doug Yones, head of exchange traded products at NYSE, told the Financial Times.