Actively Managed Exchange-Traded Funds: Structure, Regulation, and Tax Considerations
Author: Sean R. Wilke.
Source: Volume 24, Number 03, January/February 2011 , pp.5-16(12)
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Abstract:
The recent downturn in the global economy has helped foster a renewed emphasis on risk management, transparency, and transferability. In light of this, actively managed exchange-traded funds (ETFs) are uniquely positioned as a relatively new asset class on the rise. Actively managed ETFs combine the efficiencies of the indexed ETF model with the expertise of active portfolio management. This article offers an in-depth analysis of the forces behind the emergence of actively managed ETFs, and discusses the regulatory and tax regime applicable to such funds.Keywords: actively managed ETF, exchange-traded fund, mutual fund, taxation of ETFs, Undertakings for Collective Investment in Transferable Securities (UCITS)
Affiliations:
1: MarketCounsel, LLC.