On a seemingly monthly basis this year, actively managed ETFs outperform previously defined assets under management.
Another confirmation of this comes from the growing number of touted fund managers with a deep legacy with actively managed mutual funds entering the ETF arena. Some choose to do so through semi-transparent active ETFs. Add John Hancock Investment Management to this list.
In a press release published on Wednesday, the Boston-based fund giant said it was teaming up with Bean Town’s neighbor Fidelity to bring semi-transparent ETFs to market.
“Fidelity’s active equity ETF model uses an innovative ‘tracking basket’ methodology, which maintains the advantages of the ETF structure, provides information to market participants to promote efficient trading in equities and preserves the ability to add value through active management, ”the statement said.
Loyalty has already passed into the semi-transparent arena. In February, the issuer has Fidelity Growth Opportunities ETF (FGRO); the Fidelity Magellan ETF (FMAG); the Fidelity Real Estate Investment ETF (FPRO); and the Fidelity Small and Mid Cap Opportunities ETF (FSMO) at the market.
In June 2020, the fund giant launched the Fidelity Blue Chip Growth ETF (FBCG), Fidelity Blue Chip Value ETF (GFCV), and the Fidelity New Millennium ETF (FMIL). All of these products are classified as semi-transparent ETFs, meaning holdings are not disclosed to investors on a daily basis.
Issuers with decades of active management experience and expertise undoubtedly see the tidal wave of ETF support among advisers, institutional investors and retail investors. However, divulging the “secret sauce” of what makes active funds successful is not appealing to many fund companies. Semi-transparent ETFs help these issuers divide the difference.
“As the ETF landscape continues to evolve and investors are increasingly aware of the potential benefits of the semi-transparent ETF structure, we are delighted to have the opportunity to build capacity and plan for the future. future ETF investor, ”said Steven L. Deroian, Co-Head of Retail Products, John Hancock Investment Management, in the statement.
For his part, John Hancock is a force in the traditional ETF arena, with 16 funds totaling $ 4.5 billion in assets under management. These offerings include fixed income funds and multifactor market and sector strategies.
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The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or interpreted as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.