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FYI: (Follow-Up Article) Yesterday Eaton Vance got approval for a new thing that it calls an "exchange-traded managed fund," or "ETMF," or "NextShares." It is pretty neat, and since we talked about failed non-transparent exchange-traded funds a couple weeks ago, I figured we could talk about this sort of non-transparent-ETF-like thing now. Regards, Ted http://www.bloombergview.com/articles/2014-11-07/eaton-vance-invented-a-new-flavor-of-mutual-fund?cmpid=yhoo
Investments are morphing into many different ideas like this and throughout the alternative realm. Instead of investing in a solid product it will be more like ideas that investors will choose from.
It looks like this investment vehicle is going to result in lower fund distributions to have to pay taxes on, as well as lower expense ratios. Two important issues. It gives active managers one big thing they want, which is to not have to reveal the portfolio frequently in the way that ETFs have to. Looks like this might be a game changer and open a door that many companies will go thru to launch products. That competition will ultimately go to the benefit of investors. Mutual fund Expense ratios are still way too high in aggregate....maybe this will help lower them
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