BlackRock (BLK) Can Launch Actively Managed ETFs Says SEC

The iShares division of BlackRock (BLK) has been given permission by hte SEC to launch actively managed ETFs instead of only tracking ETFs, guided by certain benchmarks.

In an order dated today, regulators say that BlackRock can issue a “series of certain actively managed open-end management investment companies to issue shares” through purchases and redemptions of large blocks called creation units.

Ishares is the dominant player in the ETF field. Its diversification into active ETFs comes as some of its most popular index-based funds such as its Emerging Markets ETF (EEM) and the Russell 2000 Index Fund (IWM) face increasing competition from Vanguard and others.

BlackRock has indicated in previous filings that it plans to roll-out an active broad-based bond ETF that will use a fund-of-funds approach based on existing iShares products. It’s also expected to do much the same with its first equities fund that will use managers rather than indexes to make investment decisions.

BlackRock was trading at $185.18, gaining $1.48, or 0.81 percent, as of 12:06 PM EDT.




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