Oklahoma City, OK—based Exchange Traded Concepts, an exchange-traded fund platform for emerging managers, has received the green light from the Securities and Exchange Commission to launch actively managed ETFs, Money Management Executive has learned.
ETC, which touts itself as a “white label” firm launching funds for other managers, has several clients that it is currently talking to in terms of launching active ETFs, according to CEO Garrett Stevens. “We have individual managers with separate account strategies whoa relooking for a new distribution channel,” Stevens told MME.
“If they’re turning away clients who have less than $1 million because that’s their minimum investment requirement, they can send them to the ETF. We’re working with some mutual fund companies as well. ETFs have taken a chunk out of the mutual fund industry and some of these mutual funds want to get their own ETFs out there. We’re also creating ETFs for some hedge funds.”
On the passive ETF front, Stevens said his firm is prepping three new fund launches for early May as well as filing for three new funds at the end of March. While he declined to comment on the specific passive funds coming to market, he offered that: “We had a lot of interest in the income space, specifically yield-focused products, as well as volatility-type products and sectors niches.”