Giving actively managed ETFs a new twist

Washington

FIDELITY Investments is taking a new tack in an industry push for actively managed exchange-traded funds (ETFs). The firm's approach, outlined on Thursday in a filing with the US Securities and Exchange Commission (SEC), would be modelled on a closed-end fund, a type of fund that issues shares that trade on an exchange but isn't required to disclose holdings daily.

Fidelity is seeking to modify this structure in a way that would keep the fund's share price and net asset value more closely linked than is the case with current closed-end funds. The company's proposal is the latest in a series of efforts by fund companies to get around an SEC requirement that ETFs disclose their holdings daily, so that their shares can be priced efficiently by market makers and broker-dealers.