Funds Hiding ‘Secret Sauce’ Could Be $3 Billion Market in 2021
- ANTs attract $800 million in first year, are poised for growth
- Hurdles for investors include lower transparency, higher cost
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A new breed of exchange-traded funds that hide their holdings has been slow to win over fans this year. That may change in 2021.
Assets in the active non-transparent category -- known as ANTs -- could reach $3 billion by the end of next year, Bloomberg Intelligence predicts. The funds have only attracted about $800 million so far, but companies that license the methodology hold a collective $1 trillion in assets, indicating a huge potential for growth.