The SEC grants preliminary approval for nontransparent ETFs that don’t require daily disclosure of their positions.
Regulators say they plan to approve such funds from T. Rowe Price, Natixis, Fidelity and Blue Tractor.
Active managers have shied away from the booming ETF industry for years because the transparent vehicle would give away their best ideas and expose them to front-running.
[Previously] Precidian Investments already received the greenlight from the SEC in May for its own active ETF model. BlackRock, American Century Investments and Index IQ are among the firms that licensed Precidian’s model.