AdvisorShares selects BNY Mellon unit for custody of planned actively managed ETFs

AdvisorShares Investments LLC appears to have moved a step closer to launching its first actively managed exchange traded fund.
APR 29, 2009
AdvisorShares Investments LLC appears to have moved a step closer to launching its first actively managed exchange traded fund. BNY Mellon Asset Servicing, a unit of The Bank of New York Mellon Corp., said today that AdvisorShares of Bethesda, Md., has selected it to provide custody, fund accounting, fund administration, basket calculation and transfer agency services for its planned ETFs. “We are excited about the imminent launch of our first ETF and anticipate introducing additional products shortly,” Noah Hamman, the founder of AdvisorShares, said in a statement released by BNY Mellon. “The AdvisorShares ETF structure delivers the combined benefits of active management found in mutual funds with the advantages of an ETF, including tax efficiencies and real-time pricing and transaction capability.” Active managers tend to be leery of telegraphing their moves because they wish to prevent arbitrageurs from jumping in front of trades and adversely affecting the price of a stock in which they may be interested. AdvisorShares gets around the issue by proposing an actively managed ETF that doesn't invest directly in stocks but in other ETFs. That solves the arbitrage issue because it is much harder for an arbitrageur to affect the price of an ETF — essentially a basket of stocks — than that of a single stock.

Latest News

eMoney supports focused financial planning with enhanced needs analysis
eMoney supports focused financial planning with enhanced needs analysis

The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.

Trump SEC pick Paul Atkins grilled by Democrats in early political test
Trump SEC pick Paul Atkins grilled by Democrats in early political test

The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."

Finra moves to boot Alpine Securities, same firm that claims the regulator can’t
Finra moves to boot Alpine Securities, same firm that claims the regulator can’t

'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

What pre-retirees don't know about Social Security could be hurting them, says T. Rowe Price
What pre-retirees don't know about Social Security could be hurting them, says T. Rowe Price

Survey research reveals gaps in retirement savers' knowledge, pessimism around receiving benefits, and a lack of good options to solve looming solvency crisis.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve