Daily ETF Watch: New Active iShares ETFs

iShares is looking to add to its portfolio of active ETFs.

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Reviewed by: Hung Tran
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Edited by: Hung Tran

iShares is looking to add to its portfolio of active ETFs.

 

iShares filed updated regulatory paperwork detailing fees and tickers for its proposed actively managed iShares Enhanced International Large-Cap ETF (IEIL) and its iShares Enhanced International Small-Cap ETF (IEIS).

The new funds are international riffs of two active U.S. equity funds launched last April: the iShares Enhanced U.S. Large-Cap ETF (IELG | B-74) and the iShares Enhanced U.S. Small-Cap ETF (IESM | B-58).

The proposed new funds are coming to market at a time when equity prices are under pressure in developed as well as emerging markets, stunted by slow growth in the U.S. and China and the Federal Reserve’s tapering of its economic stimulus.

IEIL, the large-cap version, and IEIS, the proposed small-cap international, will charge 0.35 percent, or $35 for every $10,000 invested, and 0.49 percent, or $49 for every $10,000 invested, respectively.

Filings

  • Mutual fund shop Dreyfus has filed paperwork with regulators seeking permission to launch active ETFs, emblematic of the rise in assets of ETFs that could eclipse assets in mutual funds by 2024.

In its filing, Dreyfus requested permission to launch funds that could invest in other ETFs with exposure to equity and fixed-income securities in developed as well as emerging markets. In addition, funds may use short sales to hedge its portfolio.

 

The world of ETFs continues to slowly and steadily expand, with $2 trillion in assets under  management now in sight. That’s far less than the $13 trillion in open-end mutual funds or the $6 trillion in hedge funds, but the writing’s on the wall, and no one, including Dreyfus, wants to be left out.

  • ETF newcomer ETFis Capital has received permission from regulators to begin marketing self-indexed ETFs, continuing a trend among issuers to bring their wares to market more quickly and more cost efficiently by bypassing third-party indexers. The order from the Securities and Exchange Commission also permits the firm to launch long/short and 130/30 funds.

 

Hung Tran is a former staff writer for etf.com.