Europe likely to tryout active ETFs

The first active exchange traded funds might be introduced in the United States within the next three to six months, according to sources close to negotiations between the Securities and Exchange Commission and Bear Stearns Asset Management Inc. of New York.
MAY 02, 2007
The first active exchange traded funds might be introduced in the United States within the next three to six months, according to sources close to negotiations between the Securities and Exchange Commission and Bear Stearns Asset Management Inc. of New York. Since Bear Stearns filed a prospectus in March to launch YYY Trust, which will actively invest in money market and short-term fixed-income obligations, ETF managers have been keeping a close eye on the developments. If approved, it will be the company’s first ETF, as well as the nation’s first active ETF, potentially opening a door for others to introduce what could be one of the most important new investment tools in years. But the Bear Stearns ETF is still relatively limited and doesn’t adequately confront some of the stickier issues associated with actively managed ETFs — for example, how to provide added value with proprietary stock-picking skills and still be completely transparent under current regulatory requirements. Instead, some argue, Europe might be a more apt place to test the waters. A main reason is that regulatory requirements are less stringent, making it easier to introduce new ways of structuring ETFs, managers said. “Europe is catching up rapidly and in some ways passing the U.S.” in ETF innovations, said Greg Ehret, senior managing director and London-based European head of sales and distribution at State Street Global Advisors of Boston.

Latest News

How AI search aided scam from phony NFL player, fake financial advisor
How AI search aided scam from phony NFL player, fake financial advisor

Daejon Love and Taylor Chan's $1.3 million romance fraud scheme exposes how AI search engines can be manipulated by fabricated online identities

Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client
Schwab ordered to pay clients $1.34 million in crypto dispute involving elderly client

“It was a third party scam,” said the attorney representing the claimants.

RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust
RIA moves: Mercer adds to Atlanta presence with veteran advisor from Northern Trust

Meanwhile, &Partners draws another Commonwealth practice, and Wealthcare welcomes a $550 million planning practice in the Northeast.

CogniCor adds wealthtech veterans to board in renewed RIA push
CogniCor adds wealthtech veterans to board in renewed RIA push

Palo Alto AI platform recruits RIA and fintech leaders as industry data show AI adoption reshaping advisor staffing.

Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico
Advisor moves: Merrill draws $1.2 billion UBS team in New Mexico

Meanwhile, Raymond James, Wedbush, and LPL recruited veteran advisors from across Texas, North Carolina, and California.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income