Precidian Paves the Way for Non-transparent, Active ETFs

Interesting article from our ETF colleagues on the recent announcement from the SEC allowing Precidian Investments contingent approval to license actively-managed, non-transparent ETF structures – the first ETF of its kind to gain initial approval.

The approval, which will come this week, barring any public objections, limits ActiveSharesSM ETFs to holdings listed on US exchanges that trade during the same hours as the ETF and may also open doors to new product types. It could be positive news for securities lending, and if these structures gain traction we could see increased engagement for active managers in lending programs, given how prevalent lending is among ETFs.

Read our latest edition of our ETF newsletter, Exchange Thoughts, to learn more about the potential features of this new structure and the key considerations for managers contemplating this model.