Active ETFs need transparency to compete

The firm's latest Vision Focus report says active ETFs have high growth potential and have "piqued the interest" of many market participants since emerging in 2008. State Street says although active ETFs have been slow to burgeon, they are already changing the way ETFs are serviced. This is largely because an active fund does not necessarily reflect a benchmark, as the ETF is subject to a manager's selection. However, State Street questions the transparency of active ETFs, as holdings can change up until the close of the stock market on a given day. Transparency is one of the funda...