Rising Interest for Semi-Transparent, Actively Managed ETFs | ETF Trends

The actively managed ETF space has overshadowed by the passive indexing side. Nevertheless, more issuers are coming in and looking to the semi-transparent ETF structure as a gateway into the ETF industry.

“Certainly there’s more interest in it. What we’re hearing from advisors is that over eight out of every ten advisors has an interest in buying a semi-transparent ETF over the next 12 months,” Rick Genoni, Managing Director, Head of ETFs, Legg Mason, said at the Inside ETFs conference.

Legg Mason has partnered with Precidian Investments’ to offer semi-transparent, actively managed ActiveShares ETFs to help managers maintain their secret sauce and provide end clients a more efficient way to access their actively managed capabilities.

Precidian is also working with other money managers to bring more strategies into the active ETF space.

“We’ve licensed 14 different active managers to date that control about thirteen-and-a-half trillion dollars in assets under management,” Dan McCabe, CEO, Precidian, said.

“Frankly, it’s a pivot point in the industry. I think for now, for the first time in 25 years, active managers are going to have a vehicle, whether it’s ours or somebody else’s, that will allow people to compete head-to-head with the passive ETF space,” he added.

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