Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:iShares Throws the Switch on Two Active ETFs Not Rated 5.0 Email Routing List Email & Route  Print Print
Thursday, May 14, 2009

iShares Throws the Switch on Two Active ETFs

Reported by Sean Hanna, Editor in Chief

Their names may sound like those of two generic index funds, but the two new ETFs from Barclays Global Investors' iShares unit are anything but that. iShares Active Equity Fund and the iShares Active Fixed Income Fund are the latest two offerings from the San Francisco-based market share leader in exchange-traded funds. Each of the two will be actively managed.

BGI iShares filed on May 4 with the SEC to register the funds (see filing). Because of the uniqueness of the filing -- each ETF is examined independently -- it is not clear how long the SEC will take to approve the registration.

A BGI iShares executive involved in the filing suggested that the actual launch of the ETFs may be a long way off and that it is not imminent.

The filing did not list projected expense ratios but it did reveal that Barclays Global Fund Advisors will serve as the advisor to the two ETFs and SEI Investments Distribution Co. is the distributor.

In an interview with the MFWire.com last week, Noel Archard, managing director and head of product research and development, said that iShares has a strong partner in its still-sister asset management firm Barclays Global Investors and that BGI is its first stop in seeking subadvisors.

He did not rule out the use of third-party subadvisors once the sale of the iShares unit is complete.

Last month, Barclays unveiled a plan to sell iShares to Blue Sparkle, a limited partnership formed by private equity firm CVC Capital Partners for $4.4 billion (see MFWire 4/09/09). Barclays is soliciting other bids until mid-June.

Archard downplayed the strategic importance of active ETFs, but he did explain some of their potential benefits to investors. One key advantage over actively-managed, open-end funds would be tax efficiency, he said. That efficiency is best seen cases in which an investor moves shares between broker-dealers. ETFs have the portability of regular shares while some funds would have to be sold and re-bought as a part of the transfer.

"The unsung attribute of the ETF is the portability," said Archard.

He also pointed to the potential liquidity created by the create and redeem feature used in the share creation for ETFs.

One aspect of active management that iShares is not exploiting with the new ETFs is using branding to sell shares. Neither fund has a catchy name and iShares is not leveraging "star power" from famous subadvisors. That decision fits with the iShares culture though.

Archard explained that active ETFs from iShares will mesh with the firm's broader culture and will not be created just for the sake of creating active ETFs.

"It has to be true to the iShares DNA at the end of the day," he confided.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use