FYI: The “next great investment product” finally has passed muster with the U.S. Securities and Exchange Commission. The question now is whether it will pass the sniff test of investors and advisers when it comes to market next year.
Earlier this month, the SEC approved an Eaton Vance Asset Management request to create “exchange-traded managed funds,” (ETMFs); in due time — likely the middle of next year — this will lead to the creation of NextShares, a new brand of investment that will manage, market and sell the new investment types. Eaton Vance currently plans to introduce 18 flavors of the new EMTFs when NextShares rolls out.
NextShares is interesting, different and intriguing, but it may not be what investors were actually expecting when they heard that actively managed exchange-traded funds were in the offing.
Regards,
Ted
http://www.marketwatch.com/story/hybrid-mutual-fund-etf-terrific-investment-or-a-turkey-2014-11-17/print
