ETF Awards: Best, Worst and What to Watch in 2014

By Eric Balchunas - 2013-12-19T16:50:25Z

Phtograph by Joshua Roberts/Bloomberg

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What to Watch in 2014

The Exchange-Traded Mutual Fund

In 2014, if the Securities and Exchange Commission approves it, investors could see the first exchange-traded mutual fund, also known as a non-transparent actively managed ETF. This is a new structure in which, unlike with a regular ETF, investors can’t see its holdings every day. What they can do is trade the fund throughout the day, like an ETF, and the fund can trade at a premium or discount to the value of its underlying assets. If ETMFs are approved, it could open up the floodgates for fund companies like Eaton Vance Corp. and T. Rowe Price Group, which have been reluctant to launch ETFs because they don’t want to show fund holdings every day. 

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