Exchange Traded Concepts Plans Active ETFs

October 21, 2011

Exchange Traded Concepts sets its sights on marketing active ETFs with new filing.

Exchange Traded Concepts, the new firm that helps other money managers bring ETFs to market, filed regulatory paperwork seeking permission to market actively managed ETFs, adding to the company’s existing “exemptive relief” to market index ETF strategies focused on stocks.

The new filing casts a wide net, seeking permission to offer both U.S. and international active ETFs focused on stocks, bonds or a blend of the two asset classes. The company said it’s also asking for permission to market active fund-of-fund ETFs.

If it obtains the broad permission to offer active funds, and if its Sept. 21 exemptive relief petition asking for the right to offer bond ETFs is successful, Oklahoma City, Okla.-based Exchange Traded Concepts would be able to offer its clients a full spectrum of potential international and domestic equity ETFs, giving its “ETF In A Box” marketing hook more credibility.

The company, which rose from the ashes of the now-defunct ETF firm FaithShares last summer, is similar to Bethesda, Md.-based AdvisorShares, in that it pairs up with money managers and helps them bring ETFs to market. However, AdvisorShares only focuses on active funds and, unlike Exchange Traded Concepts, always includes the AdvisorShares name in ETFs it brings to market.

Future Funds

The company said in the filing that the first fund it hopes will come to market under the active exemptive relief it is seeking will be called the Yorkville Global Opportunities ETF. It will be a global long/short equity fund that seeks capital appreciation, while also attempting to preserve capital.

According to Exchange Traded Concepts’ filing, the initial ETF’s investment strategy will emphasize investments in equity securities of companies of all market capitalizations and will seek less volatility than the S&P 500 Index.

Separately, the company said in August that the first funds using its exemptive relief for indexed equity funds went into registration with the Securities and Exchange Commission. It filed for six China-focused ETFs into registration on behalf of Krane Funds Adviser, which will serve as advisor to the ETFs.

The funds target different aspects of the China-development story, including one that tries to profit from business activity stemming from the Chinese government’s five-year plans.

The company’s business is based on being able to save ETF issuers the expense and legal hassle of filing for exempt relief on their own.



Lean why bond ETFs are an essential part of a diversified portfolio with our bond ETF channel.

Learn how currency-hedged ETFs can reduce the currency risk in your portfolio.


'IBB' saw big inflows for a second-straight session on Wednesday, Sept. 30.

Inflows into 'XLV' on Wednesday, Sept. 30 paced gains for SSgA, which saw its assets grow by more than $1 billion.


By Dave Nadig

Five consequences of the proposed rules the SEC put out yesterday.

By Sumit Roy

It's never happened, but it could.

By Dave Nadig

Think twice before getting excited.

By Sumit Roy

Readers bring up some interesting questions in light of the recent plunge in a popular oil ETN.


By Denise Krisko

Managing liquid alt strategies.

By Scott Eldridge

Protecting your fixed income allocation in a volatile rate environment.

By iShares

How currency-hedged ETFs can help U.S. investors investing in international stocks.