Translucent ETFETF approved in the U.S. to disclose stocks but does not provide weighting
Source: China Fund News Original title: Translucent ETF investors approved in the US seeking to create an ideal actively managed exchange-traded fund face a unique challenge.
ETF investors like preferences and initially know that some stocks are in the fund’s portfolio.
But fund managers are worried about joint ventures stealing their investment ideas.
The US Securities and Exchange Commission approved Precidian Investments’ first non-transparent ETF structure in April this year, causing a market sensation.
Too many fund companies hope to gradually divert the success of ETFs to active management products.
It is understood that large-scale fund management companies such as BlackRock, American Capital Group, JP Morgan Chase and Legg Mason have obtained the right to use non-transparent ETF structures.
However, this is not an announcement of the final form of non-transparent ETF products, and more and more competing products are starting to ask questions.
For example, the world’s first non-transparent ETF regularly disclosed fund positions, which is somewhat similar to the practice of traditional mutual funds.
Recently, another company has proposed another method, which will disclose the shares held by investors to investors every day, but will not disclose their intervention weight, which may be more pleasing to investors and get their attention.
Simon Gullet, co-founder of the FinTech company Blue Tractor Group, has formally submitted a related application to the SEC.
According to market analysis, this seems to be a useful compromise because investors know what is in 杭州夜网 the portfolio, and fund managers also have the opportunity to establish or reduce stock and bond positions without their knowledge, meeting the needs of both parties, and at the same timeTo prevent the so-called “grabbing” operation, which simulates tracking fund positions but preempts one-step trading.
Specifically, the ETF will publicly disclose its stock portfolio and use computer algorithms to randomly change the weight of the fund manager ‘s actual portfolio.
Real portfolios and publicly disclosed computer-generated portfolios will always have at least 90% weighting overlap, which gives fund managers room to make changes without attracting the attention of investors, and at the same time to market makersProvide enough information to create and redeem a basket of ETF shares.
If regular ETFs are transparent, then 深圳桑拿网 such product structures are called translucent.
Opaque ETFs may be considered as a combination of mutual funds with their product structure, but their current market acceptance is not high.
Despite the huge space, there are still many fund companies that have caused potential harm due to the merger of other products, especially mutual funds with higher fees from the same company.