Asset management firm T. Rowe Price has received the remaining approvals necessary from the Securities and Exchange Commission to launch four nontransparent active exchange traded funds. It expects to list them on the NYSE Arca sometime this year.
The firm will start with the Blue Chip Growth ETF, the Dividend Growth ETF, the Equity Income ETF and the Growth Stock ETF, and the four ETFs will use the same investment strategies and portfolio managers as corresponding mutual funds.
T. Rowe will use a proprietary portfolio disclosure process, so market makers have enough information to quote prices with a high degree of confidence. The firm plans to roll out ETFs covering other asset classes over time.
It plans to license its active ETF model to other asset managers.
“When launched, these ETFs will be the only ones in the market informed by T. Rowe Price’s strategic investing approach and supported by our global research platform of more than 600 investment professionals,” said Rob Sharps, head of investments, group chief investment officer at T. Rowe. “We believe this makes them distinct.”