Recent 40-APP filings from a range of financial services firms indicate that the number of players looking to enter the ETF arena is growing.
The biggest of those names is J.P. Morgan. The firm is already a large service provider to other ETF companies, supplying custody and related services to more than 100 third-party ETFs. March filings from the firm suggest it will soon join the list of issuers as well, with plans to launch both index-based and actively managed ETFs across a wide range of asset classes. An intermediate municipal bond ETF and a floating-rate corporate debt ETF, both passively managed, are likely to be the first funds in its lineup.
Eaton Vance, Legg Mason and RiverPark Advisors have also filed 40-APP forms with the Securities and Exchange Commission requesting the exemptions necessary to launch actively managed ETFs.
Eaton Vance’s filing outlined five proposed fixed-income funds: the Eaton Vance Enhanced Short Maturity ETF, the Eaton Vance Government Limited Maturity ETF, the Eaton Vance Intermediate Municipal Bond ETF, the Eaton Vance Prime Limited Maturity ETF and the Eaton Vance Short Term Municipal Bond ETF. The Boston-based firm is best known for its closed-end funds.
RiverPark’s filing described two proposed funds: the RP Short Term High Yield Bond ETF and RP Energy ETF. The company already serves as subadviser to four active Grail Advisors ETFs, but appears to be looking to carve out its own niche in the ETF marketing space.
Legg Mason’s 40-APP filing had been rumored to be in the works since last autumn, so it came as no surprise. The filing lays the groundwork for actively managed vehicles ranging from domestic and/or global equities to fixed-income asset classes, though the company didn’t specify which funds it would launch.
40-APP filings are basically requests for exemptive relief, which is the first step on the path to launching ETFs. It often takes at least six to 12 months from the date of the initial filing for a company’s first ETF to hit the market.
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