1st Gencap Active ETF To Focus On Mongolia

By
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.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

U.S. and international equity funds led net inflows of $5.15 billion on Thursday, May 28, bringing total U.S.-listed ETF assets to $2.165 trillion.

'SPY,' 'XLF' and 'XLV' paced SSgA's issuer-leading inflows on Thursday, May 28, as total U.S.-listed ETF assets rose to $2.165 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

The ETF world is a hotbed of interesting new ideas, as this week’s launches make clear.

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

ETF INDUSTRY PERSPECTIVE

By Nasdaq Global Indexes

Bond exposure or bond performance? Only defined maturity indexes provide the latter.

By Invesco PowerShares

Invesco PowerShares and Market Strategies International’s second annual survey provides vital insights about smart beta and ETFs overall.

By Invesco PowerShares

Investors are implementing smart-beta exchange-traded funds (ETFs) in their portfolios in a variety of ways and for different reasons.