Add another huge name of the ranks of would-be exchange traded fund (ETF) providers: Legg Mason filed with the Securities and Exchange Commission (SEC) to launch actively managed funds.
Legg Mason, based in Baltimore, has filed with the SEC to launch active ETFs. According to a spokeswoman, Legg intends to offer stock and bond ETFs that implement active strategies in an attempt to outperform their benchmarks, says Eileen Ambrose for The Baltimore Sun.
With fewer than a couple dozen actively managed ETFs on the market, the market share is wide open and ready for the taking. It’s a waiting game right now: actively managed ETFs are still waiting for an influx of assets, and investors are waiting to see if these funds can consistently generate alpha. If they can, they’ll come calling. [Opportunities for Actively Managed ETFs.]
Legg is the latest in a growing list of household names that are looking to launch active ETFs. T. Rowe Price, Goldman, Putnam and TD Ameritrade have all expressed an interest. [Grail Advisors: Leading the Charge.]
For more stories about actively managed ETFs, visit our actively managed ETFs category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.