Alliance Throws Hat Into Active ETF Ring

By
ETF.com Staff
July 17, 2010
Share:

Alliance Bernstein becomes the latest company to join the exchange-traded fund revolution, with a filing describing plans to offer actively managed stock and bond ETFs.

Alliance Bernstein, the money-management firm known for its early focus on the promising nature of emerging markets as an investment destination, filed papers with the Securities and Exchange Commission that would allow it to join the roster of other financial companies seeking to offer active ETFs.

The filing provides broad outlines of plans to offer actively managed equity and fixed-income funds that use quantitative strategies to select securities. The company is casting a wide net, suggesting it could ultimately roll out a broad array of funds that would focus on U.S. and international companies.

The filing makes Alliance, known also for its focus on high-net-worth individuals, the latest high-profiie financial company to throw its hat into the growing realm of actively managed ETFs. Other companies that have made exemptive relief filings with the SEC outlining plans for actively managed ETFs include Goldman Sachs, Legg Mason and J.P. Morgan.

Exemptive relief grants ETF firms exception to sections of the Investment Act of 1940 and are just the first step in the path to launching ETFs. It often takes at least six to 12 months from the date of the initial filing for a company’s first ETF to hit the market.

ETF.COM CHANNELS

Trying to figure out alternatives ETFs? Use our alternatives ETFs channel, library and ETF screener!

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

ETF DAILY DATA

Large-cap U.S. equities and U.S. bond funds, particularly Treasury ETFs, captured the bulk of fresh ETF net assets Wednesday, Sept. 2.

'SPY' and 'BIL' paced State Street's issuer-leading inflows Wednesday, Sept. 2, as total U.S.-listed ETF assets rose to $2.010 trillion.

ETF.COM ANALYST BLOGS

By Dave Nadig

With many ETFs currently trading well off fair value, what’s an ETF investor to do? Don’t panic.

By Matt Hougan

Out-of-favor funds can bring attractive returns.

By Matt Hougan

New data from Charles Schwab show that the death of mutual funds is happening faster than we thought.

By Dave Nadig

Grab the popcorn. Precidian just doubled-down on its nontransparent active ETF proposal with the SEC this morning.

ETF INDUSTRY PERSPECTIVE

By John Del Vecchio

An index that goes long financially sound companies and shorts the ones with problematic balance sheets.

By Dan Draper

The nature of retirement is changing. How can investors adapt?

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.