## [# Daily ETF Watch: New Active Fund Planned](/sections/daily-etf-watch/daily-etf-watch-new-active-fund-planned)
# Daily ETF Watch: New Active Fund Planned
Wells Fargo plans a foray into the world of active ETFs.
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[By Hung Tran](/contributors/hung-tran)
Jun 24, 2014
Edited by: Hung Tran
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Wells Fargo is the latest bank outside of the ETF space to [file for permission](https://www.sec.gov/Archives/edgar/data/1327354/000090724414000162/etfapplication.htm) to launch its own brand of active ETFs, continuing [a trend](/sections/features/22369-deutsch-jp-morgan-an-active-etf-firm-.html) of mutual-fund-focused firms looking to get a piece of the growing ETF market.
Wells Fargo’s first proposed fund is the Wells Fargo Advantage Ultra Short-Term Bond ETF. As its name suggests, the ETF will invest in short-term income-producing debt securities, including U.S. government obligations, corporate debt securities, bank loans and mortgage- and asset-backed debt securities.
Active ETFs are widely seen as the next major chapter of ETF development, and that includes transparent active strategies like those planned by Wells Fargo, quasi-active strategies in so-called smart-beta index funds that seek to outperform market-cap-weighted index funds, and even nontransparent active strategies that haven’t yet been approved by regulators.
Associated fees and tickers for the fund was not immediately available in the filing.
**Upcoming Launch**
UBS is looking to add another ETN to its lineup in addition to making a splash in the active ETF front.
The firm on Wednesday, June 25 is launching a 2x levered version of a fund it launched [earlier this month](/sections/daily-etf-watch/22317-daily-etf-watch-new-fisher-etns-to-launch.html) called the Etracs Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN (LMLP), according to an NYSE Arca [communique](https://www.nyse.com/pdfs/LMLP.pdf).
Associated fees for the offering were not immediately made available.
**Filings**
KraneShares is taking another stab at mainland China securities with its [latest proposed fund](https://www.sec.gov/Archives/edgar/data/1547576/000114420414039016/v382002_485apos.htm), called the KraneShares E Fund China Commercial Paper ETF, a fixed-income offering.
This fund will not have a currency hedge, which is noteworthy because KraneShares is one among a number of ETF sponsors looking to carve out a piece of the *currency-hedged* portion of the Chinese investment universe.
Indeed, KraneShares [recently updated its regulatory filing](/sections/daily-etf-watch/22364-daily-etf-watch-jp-morgan-era-to-begin.html) for a hedged version of its latest fund, called the KraneShares E Fund China Commercial Paper Hedged ETF (KEEP) as it continues to develop products focused on China.
The new *unhedged* fund will track the CSI Unhedged Diversified High Grade Commercial Paper Index. It will track the performance of investment-grade on-shore renminbi-denominated commercial paper issued by sovereign, quasi-sovereign and corporate issuers in the People’s Republic of China, according to a regulatory filing.
Issuers such as KraneShares and Deutsche Bank have made it a point to offer U.S. investors different shades of on-shore China-focused equity funds in hopes of unraveling return potential in the world’s second-largest economy.
Associated fees and tickers for the offering weren’t disclosed in the filing.
[ Hung Tran ](/contributors/hung-tran)
Hung Tran is a former staff writer for etf.com. [View Bio](/contributors/hung-tran)
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