Choosing Your Path to the Semi-Transparent ETF Age

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The advent of the semi- transparent ETF could be a game changer for the industry. Scott Livingston, Head of Global Product at T. Rowe Price explains, “While passive products have fueled the growth of ETFs in the past, we believe that actively-managed ETFs have the potential to gain traction with investors that are seeking active management but are interested in the efficiency of ETFs.” Despite its potential, the transformation will not happen overnight. It will take time both for the market to develop and the preferred path to semi-transparency to emerge. Nonetheless, the growth of the ETF industry seems set to continue and active managers need to find a way to take advantage of this trend. The semi-transparent ETF may be just what the doctor ordered. “To convert a mutual fund to an ETF, managers would have to transfer the investors into brokerage accounts to issue shares of the ETF.” Peggy Vena Director of ETF Product Development, Citi