BlackRock is seeking to roll out non-transparent actively managed ETFs, Index Universe reports. The firm has filed an “exemptive relief” petition with the Securities and Exchange Commission. If approved, it may include disclosures being made similar to those in place for mutual funds, currently every three months. BlackRock’s plan envisages that these funds invest on behalf of the authorized participant without disclosing portfolio holdings until regulators require it. Such a fund would be able to eliminate higher-cost securities to get rid of embedded capital gains at the fund level, leading to higher tax efficiency.
Click here for the story from Index Universe.