Two Firms File for 'Active' ETFs

Two asset management firms are giving it another try with the Securities and Exchange Commission to introduce actively managed exchange-traded funds, but the funds’ difference from existing enhanced index, or semi-active ETFs is only subtle, The Wall Street Journal reports. And that is exactly how they hope to win SEC approval.

AER Advisors, an affiliate of Alpha Equity Research, proposes using a rules-based system to pick stocks and announcing changes to its portfolio on Friday. XShares would announce its holdings from the previous day after the market has closed.