1st Gencap Active ETF To Focus On Mongolia

By
Hannah Tool
July 24, 2013
Share:

Gencap’s aim to offer active ETFs includes hopes of launching a Mongolia fund.

Gencap, the firm behind the FactorShares ETFs that brings funds to market on behalf of third-party clients, updated its regulatory paperwork seeking permission to offer active funds. It still hopes a Mongolia-focused equity fund will be the first ETF launched once it obtains approval.

FactorShares was purchased by Gencap, a firm headed by former MacroMarkets Chief Executive Sam Masucci, and involving a number of ETF industry veterans.

Gencap helps clients bring passive funds to market under the Securities Act of 1933 and the Investment Company Act of 1940, and hopes to market actively ‘40 Act ETFs too. Gencap has indicated it might even help clients launch ETNs. Gencap planned from the first to use the permission that FactorShares already had to market’33 Act funds as well as passively managed ’40 Act funds.

Gencap is behind eight ETFs, including three metals and mining funds under the brand name “PureFunds” and five “FactorShares” bull-and-bear leveraged spread strategies that pair S&P 500 exposure with other asset classes, including oil, Treasurys, the dollar and gold.

The PureFunds ETFs—PureFunds ISE Diamond/Gemstone (NYSEArca: GEMS); PureFunds ISE Junior Silver (Small Cap Miners/Explorers) (NYSEArca: SILJ); and PureFunds ISE Mining Service (NYSEArca: MSXX)—were all launched under FactorShares’ exemptive relief. The funds, like other miner-related equities funds, are frequently on IndexUniverse’s daily Best/Worst ETF Returns tables.

Gencap’s petition to offer active funds initially surfaced in a June 2012 filing from Active Relief LLC, which was identified in the latest filing as a predecessor entity of Gencap.

 

ETF DAILY DATA

The S&P 500 funds 'SPY' and 'IVV' led inflows on Thursday, Feb. 26, as total U.S.-listed ETF assets dipped to $2.094 trillion

'SPY,' 'MDY, 'XLF' and 'XLY' paced SSgA's issuer-leading inflows on Thursday, Feb. 26, as total U.S.-listed ETF assets fell to $2.094 trillion.

ETF.COM ANALYST BLOGS

By Elisabeth Kashner

Virtu’s mind-bending way to play oil market volatility is a fascinating glimpse into the world of ultra-sophisticated investors.

By Dave Nadig

A reader asks: What happens to ETFs when the market goes nuts?

By Dennis Hudachek

In the growing world of currency-hedged ETFs, Germany strategies are getting short shrift.

By Elisabeth Kashner

A look at ETF.com's powerful revamping of its classification of U.S. total market ETFs.