The nascent active exchange-traded fund space, which is currently populated by PIMCO, AdvisorShares and Guggenheim, will soon get a new entrant if it has anything to say about it.

Boston-based Putnam Investments has filed paperwork with the Securities and Exchange Commission to launch an active ETF, according to CEO Bob Reynolds.

Reynolds, who shared his firm’s plans with an audience of fund managers and advisors at the Tiburon CEO Summit XXII in NYC yesterday, said: “I do think there will always be room for active management and the more people who index, the more inefficient the market becomes. ETFs are great trading vehicles but some of them underperform their benchmarks by 1000 basis points.”

He added that “skill always gets paid,” referring to active managers versus their indexing counterparts.

Other firms that have also filed for their own active ETF offerings include BlackRock, State Street Legg Mason, Charles Schwab Corp and, more recently, Pyxis Capital, the rebranded Dallas-based money management firm formerly known as Highland Funds Asset Management.



Register or login for access to this item and much more

All On Wall Street content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access