Exchange traded managed funds are “fully compatible with active management” in a way that ETF structures may not be, Clarke said.
Exchange traded managed funds 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, a hybrid of what some consider the best parts of actively managed mutual funds with an exchange traded fund-esque structure.
“NextShares can invest in all the same asset classes and employ the same strategies as mutual funds,” according to Eaton Vance. “NextShares may replicate the strategies of their managers’ mutual funds or employ strategies offered exclusively as NextShares. Different from most ETFs, NextShares are actively managed and seek to exceed the returns of their performance benchmarks and peer funds. NextShares are designed for long-term investors who seek active portfolio management with structural cost and tax efficiencies.”
A number of companies have already partnered with NextShares to file or launch products, including Brandes Investment Partners, Oaktree Capital Management, Causeway Capital Management, Hartford Funds, Reinhart Partners Inc, Calvert Research and Management, and more recently Russell Investments. NextShares anticipates more launches in the months to come in addition to continued progress with broker dealer platforms carrying NextShares products – for instance, UBS Financial Services announced the availability of NextShares on its UBS brokerage platforms and UBS strategic Advisor.
Most recently, Hartford Funds rolled out the Hartford Global Impact NextShares Fund (HFGIC), which seeks long-term capital appreciation by investing in companies throughout the world that it believes are likely to address major social and environmental challenges.
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