Following the decision by the US Securities and Exchange Commission approving 'non-transparent' active ETFs, the co-CEO of HANetf, Hector McNeil, has stated that it is a positive step for investors.
"We applaud the vision of the commissioners in making this a reality. For the first time, investors will be able to access actively managed ETFs that do not disclose their holdings on a daily basis but trade and operate in a similar manner to other ETFs."
HANetf stated that it sees the US lead as one to be followed by European regulators on the basis that ETFs are "simply a wrapper and should not be defined by the strategy they follow".
"ETFs are just better ‘tech'. ETFs have won the war for basic index exposure and the industry needs a solution for non-transparent ETFs to allow the active equity ETF world to flourish," the provider stated.
It argues that the efficiency benefits brought to investors by ETFs shold not be held back by "secret sauce" cited by active portfolio managers are the reason for charging a "premium fee".
"Limited disclosure has been the norm for the majority of mutual funds sold to institutional and retail investors across Europe under Ucits and has never curtailed the funds ability to raise assets or satisfy regulatory requirements. As ETFs are Ucits, why should they be held to different standards than any other Ucits fund?" HANetf asks.
The ETF provider has put forward more detailed arguments in a White Paper on non-transparent active ETFs. To read the Paper, click here: