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

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

Rating:Active ETFs Are Ready for Liftoff after SEC Rule Change Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, December 31, 2012

Active ETFs Are Ready for Liftoff after SEC Rule Change

News summary by MFWire's editors

Now that SEC has cleared the way for active ETFs that use derivatives, how will the industry change?

Wall Street Journal reporter Joe Light expects to see a "blossoming" in the active ETF field, but thinks that asset managers may use this rule change to pump up the risk in their portfolios.

Earlier this month, SEC investment management head Norm Champ announced that the agency is lifting the nearly three-year moratorium on approving active ETFs that use derivatives, a common practice for active ETF managers. Light writes that firms including OppenheimerFunds and Vanguard wrote letters to the agency urging it to remove this restriction on new products.

The WSJ thinks this regulatory change could finally spur the active ETF business to the growth that analysts have long expected to see. And Morningstar analyst Robert Goldsborough feels the same.

"This definitely gives a money manager more flexibility and more options in shaping a portfolio," Goldsborough told the WSJ. "At the margin, it removes an impediment that some money managers might have had that prevented them from moving ahead."

The full Wall Street Journal piece is here 

Edited by: Chris Cumming


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

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
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




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use