First Trust has decided not to use derivatives in any active exchange-traded funds (ETFs), Index Universe reports. The U.S. fund company will stop using options and futures contracts and swap agreements for its funds. First Trust is seeking to float First Trust 2020 Target Term Corporate Bond Fund as its initial bond fund. T Rowe Price, Van Eck Global, JP Morgan, Guggenheim, AdvisorShares and Legg Mason have already decided to stop the use of derivatives from their actively managed ETFs.
Click ere for the story from Index Universe.