Calif. Firm, Wealthfront, Files To Offer ETFs

By
ETF.com Staff
July 01, 2011
Share:

Yet another firm, California-based Wealthfront, seeks to join the ETF juggernaut.

Wealthfront, a collection of Palo Alto, Calif.-based firms in the money management business, filed paperwork with the Securities and Exchange Commission to gain regulatory permission to market actively managed ETFs focused on equity and fixed income.

The company said it hopes to one day launch equity and fixed-income funds, or funds that combine the two asset classes and that focus on U.S. as well as international securities. It said the first of its funds is likely to be a foreign equity fund that seeks long-term capital growth.

The company’s so-called exemptive relief filing is the latest to be filed at the SEC, and the second one in a week. Last week, Maine-based Forum Investment Advisors filed to gain permission to offer actively managed ETFs, the first one a fund focused largely on fixed-income securities.

Exemptive relief filings grant 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.

The applicants listed on the Wealthfront filing include Wealthfront Inc., the advisor; Wealthfront Brokerage Corp; and Wealthfront ETF Trust.

 

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

Core U.S. equity ETF 'VUSE' saw its total AUM jump nearly 30 percent Wednesday, July 29. Investors poured fresh assets into U.S. equity and bond funds alike on the day, bringing total U.S.-listed ETF assets to $2.141 trillion.

'IWM' and a handful of other iShares ETFs paced the firm's issuer-leading asset gains on Wednesday, July 29, as total U.S.-listed ETF assets rose to $2.141 trillion.

ETF.COM ANALYST BLOGS

By Paul Britt

Toss and turn about whether to hedge currency risk, but don’t lose sleep over the derivatives themselves.

By Dave Nadig

With the China A-share market half-broken, ETF investors should be very, very cautious.

By Drew Voros

Price depreciation and continued outflows have made for a tough few years.

By Dave Nadig

Legendary investor trips over how ETFs work.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

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

By Invesco PowerShares

Smart beta appears to be poised for further growth.