The exchange traded fund investment vehicle is still relatively new in the financial world. As the market matures, regulators will continue to tinker with the tool to improve on the fund vehicle.
For instance, the Securities and Exchange Commission has helped streamline the listing process for actively managed ETFs on the Bats Global Markets and New York Stock Exchange, potentially paving the way for more active ETFs to hit the market.
We have already seen a number of new active ETFs hit the market, and the relatively sparse segment of the ETF universe may quickly expand in the future. For instance, in recent weeks, Elkhorn rolled out the Elkhorn Commodity Rotation Strategy ETF (NasdaqGM: DWAC) and Elkhorn Fundamental Commodity Strategy ETF (BATS: RCOM). AdvisorShares launched the AdvisorShares Focused Equity ETF (NYSEArca: CWS). J.P. Morgan added the JPMorgan Disciplined High Yield (BATS: JPHY) and JPMorgan Diversified Alternatives ETF (NYSEArca: JPHF).
Looking ahead, we can expect even more active ETFs to hit the market. For example, Vanguard is seeking to allow a group of its active funds to be permitted to issue ETF shares that will be actively managed as well.
SEE MORE: Vanguard Seeks to Launch Active ETFs