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.
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“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.