ETF Database » YYY

Will Legg Mason Jumpstart Actively-Managed ETFs?

Michael Johnston — Wed, 24 Feb 2010 19:38:04 +0000

Legg Mason appears ready to make its long anticipated move into the active ETF space. The Baltimore-based asset management firm filed for approval with the SEC that would allow it to introduce actively-managed ETFs to U.S. markets. Filing for exemptive relief is one of the first steps on the road to launching ETFs, and requires very little in the way of disclosure from would-be ETF issuers. Legg’s filing mentioned that potential ETF products could include domestic equities, global equities, and fixed income funds, but didn’t specify beyond that or indicate which products may be first up. “Legg Mason’s plan to get into the rapidly expanding ETF industry comes on the heels of a year that saw several fund industry giants toss their hats into the ETF ring,” writes John Gabriel for Morningstar. “After dragging their feet for several years, many fund companies are now embracing the opportunity to capture a [...]

Click here to read the original article on ETFdb.com.

ETF Hall Of Shame: Nine Exchange-Traded Debacles

Michael Johnston — Thu, 13 Aug 2009 08:00:31 +0000

Over the past several years, exchange-traded funds have enjoyed a tremendous surge in popularity, passing many major milestones as they were embraced by retail and institutional investors alike. Once comprised solely of “plain vanilla” products tracking well-known equity indexes, the ETF industry has evolved at an incredible pace in recent years, and now offers investors exposure to nearly every corner of the investable market. Along the way, we’ve seen brilliant innovations (such as leveraged ETFs, “intelligent” ETFs, and actively-managed ETFs, just to name a few) and a plethora of new fund launches (at last count, there were 850 ETFs in the ETFdb Database). But it hasn’t been all sunshine and rainbows along the way. There have been a number of missteps along the way as issuers aggressively launched and promoted funds for which the market had no appetite. With ETF issuers pitching so many new products to investors, it is [...]

Click here to read the original article on ETFdb.com.

Actively-Managed ETFs: A Gamechanger?

Michael Johnston — Tue, 05 May 2009 17:44:21 +0000

Had Jerry Seinfeld pursued a career in finance, I imagine he’d be having a field day around the water cooler with the launch of the Grail American Beacon Large Cap Value ETF (GVT) yesterday: “What’s the deal with actively managed ETFs…isn’t the whole point of an ETF that is isn’t actively managed?” Since one of the primary benefits of ETFs is the reduced cost structure that they are able to offer as a result of lower asset turnover and overhead, an actively-managed ETF would appear initially to contradict itself. In reality, however, actively-managed ETFs may offer many of the same benefits as indexed ETFs while also allowing investors to attempt to beat the market. The History of Actively-Managed ETFs and the Disclosure Dilemma Bear Stearns Current Yield (YYY) was the first actively-managed ETF to be listed in May 2008. Shortly thereafter, ProShares introduced four actively managed funds (PQY, PQZ, PMA, and [...]

Click here to read the original article on ETFdb.com.

ETF Database » YYY

Will Legg Mason Jumpstart Actively-Managed ETFs?

Related Posts:

ETF Hall Of Shame: Nine Exchange-Traded Debacles

Related Posts:

Actively-Managed ETFs: A Gamechanger?

Related Posts: