When looking at actively-managed ETFs specifically, there have been claims made that Active ETFs will tend to have larger premium/discounts to NAV because of greater turnover in the fund and lower interest from market makers and designated brokers etc. We decided to look at exactly how Active ETFs in the US have fared in terms of keeping their ETF prices close to NAV.
WisdomTree Investments
When it comes to strategic asset allocation, most investors typically move their investments between equities, bonds and cash, and are often satisfied with the returns and diversification they achieve just through investments in international securities within those asset classes. However, the diversification promised by international investments, when sticking to bonds and equities can be quite deceptive.
WisdomTree Investments filed the prospectus for two new actively-managed ETFs on July 7th, that will be called the WisdomTree Dreyfus Commodity Currency Fund (CCX) and the WisdomTree Emerging Market Local Debt Fund (ELD). The Emerging Markets Local Debt Fund will be WisdomTree’s first foray into fixed-income ETFs, while the Commodity Currency Fund will add to WisdomTree’s existing line-up of eight currency income funds.
