GAMCO Launching a Fee-Free 'Love Our Planet' ETF | ETF Trends

GAMCO Investors, Inc. (“GAMCO”) said Tuesday the registration statement for The Gabelli ETFs Trust, which includes nine Precidian ActiveShares actively managed ETFs, was declared effective by the Securities and Exchange Commission (SEC).

The firm is launching the Love Our Planet & People ETF (LOPP).

LOPP “will reflect our mandate to invest in companies committed to sustainable practices such as renewable energy and the reduction or recycling of long-lived wastes such as plastics. The LOPP team has extensive experience researching and investing in companies involved in forward-looking sectors including renewable power generation (wind, solar, water), electric transmission and storage, electric mobility, waste reduction and recycling, water conservation and treatment, and human nutrition throughout the world,” according to the issuer.

If there’s one thing active fund managers don’t like, it’s having to contend with front-runners, or those traders that make the same moves as the fund manager before that manager gets around to doing so.

The idea of funds using an active ETF wrapper is proving attractive to other big name issuers. For example, BlackRock Inc. has filed to use the structure in April. JPMorgan Chase & Co. is also working on its own active non-transparent ETFs and projects the non-transparent ETF industry could ultimately command over $7 trillion in assets as more traditional fund managers transition over to the efficient ETF structure.

Active ETFs and a Unique Fee Structure

The new ETF wrapper offers the best of both traditional active equity and ETF worlds, highlighting value add through the alpha potential of active management, access to a growing array of active equity strategies, the advantages of the more efficient ETF structure, and the additional choice of structures that meet investor needs.

GAMCO is offering a unique fee waiver with LOPP.

“In an effort to encourage investment, and to acknowledge our appreciation for our private wealth and mutual fund clients, we will offer a loyalty program under which the first $100 million invested in LOPP will incur no fees or expenses for at least one year. We are privileged to absorb all costs in an effort to underscore our emphasis on the environment, and to help our clients invest in the future of planet earth and our people,” according to the firm.

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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.