Broadridge Publishes Active ETF Report

A recent report published by Broadridge highlights key considerations for both managers of active ETFs as well as considerations for fund directors. The report outlines current trends in the active ETF space and discusses “clones, siblings, and cousins,” definitions that connect similar established active mutual funds to ETF products. The report discusses how pricing can vary between each of these and in relation to the mutual fund product. It also outlines questions for fund boards to consider, including:

• Are there potential impacts to investors remaining in a mutual fund due to a launch of a similar ETF, e.g., price increase, tax implications?
• What are the operational differences between a fund and an ETF?
• Will a clone ETF impact flows to an existing mutual fund, and what are the trickle-down impacts?

The report notes that while there is no definitive answer, “boards, product, and distribution teams will need to collaborate more than ever to make the final call on pricing.”

Click here to read the Broadridge Active ETF report.