NEW YORK (Reuters) – The U.S. Securities and Exchange Commission said in a filing on Monday it plans to approve Precidian Investments’ non-transparent exchange-traded fund (ETF) proposal.
The conditional approval would allow a new type of actively managed exchange traded fund that, like traditional active mutual funds, will not be required to disclose its holdings on a daily basis as most current active ETFs must. The SEC said it would approve the proposal unless its commissioners decide to order a hearing.
Precidian’s ActiveShares technology – which has been licensed by fund companies including ETF giant BlackRock Inc (NYSE:) – is designed for money managers who actively pick stocks and bonds instead of following a market index.
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