Asset managers are rushing to launch a new breed of stock-picking exchange-traded fund, only to find that some of the biggest brokerages in the U.S. aren t yet willing to pitch them to clients.
Fidelity Investments, T. Rowe Price Group Inc. and Invesco Ltd. are among the firms that have recently introduced semitransparent active ETFs, which combine features of mutual funds and traditional ETFs. The funds, which currently focus on U.S. stocks, are cheaper alternatives to mutual funds and give portfolio managers the chance to try to beat the market without running the risk of being copied or front-run. But they don t disclose their daily holdings the way other ETFs do.