T. Rowe Price Plans Actively-Managed ETFs
Friday, December 11th, 2009Michael Johnston submits:
T. Rowe Price (TROW) has filed with the Securities and Exchange Commission for approval to launch a line of actively-managed ETFs. In the filing for exemptive relief with the SEC, T. Rowe indicated that its initial fund would invest primarily in domestic fixed income securities, but that it could eventually launch domestic and international equity ETFs, as well global fixed income funds.
T. Rowe Price is the latest in a now long line of mutual fund giants to jump over to the ETF industry. Vanguard was one of the earliest entrants into the space, and has become one of the most successful ETF issuers. The firm founded by Jack Bogle saw cash inflows of almost $5.5 billion in November, the most of any ETF issuer for the month. PIMCO and Charles Schwab have also made successful transitions into the ETF space: PIMCO now has nine fixed income ETFs (including two actively-managed funds) that have collected nearly $500 million in aggregate assets, while Schwab’s four low-cost funds have racked up more than $150 million in just over a month of trading. And just this week, Old Mutual made its entrance to the ETF industry, launching the first “zero cost, zero fee” ETF.
