ETMFs are not exchange traded funds. Eaton Vance has a launched a number of products under its NextShares brand, covering a relatively new structured product called exchange traded managed funds, or ETMFs, a hybrid of what some consider the best parts of actively managed mutual funds with an exchange traded fund-esque structure.
ETMFs are a new concept that marry the liquidity and tax efficiencies that have attracted investors to ETFs with active investment strategies, while maintaining the confidentiality of current portfolio trading information to protect a manager’s “secret sauce.” Unlike traditional ETFs, ETMFs will not disclose holdings on a daily basis. The patented methodology allows the funds to trade just once per day at the close of business, but investors can still buy and sell ETMFs in real time during normal hours. Consequently, investors who enter a trade during the day will pay a slight premium to net asset value to acquire shares or receive slightly less than NAV to sell.
“We are proud to partner with Hartford Funds to bring Hartford Global Impact NextShares Fund to market,” Stephen Clarke, President of NextShares Solutions LLC, said in a note. “It is the first equity NextShares product to invest in companies whose core business seeks to address the world’s major social and environmental challenges.”
For more information on exchange traded managed funds, visit our ETMFs category.