BlackRock has filed with the Securities and Exchange Commission to offer 13 equity ETFs, Bloomberg reported Thursday. The actively managed ETFs are designed to compete with stock-picking mutual funds.
They wouldn’t disclose their holdings daily, according to Bloomberg. The company already has permission to offer active ETFs with daily transparency.
The SEC hasn’t approved ETFs that don’t reveal their holdings on a daily basis, Bloomberg notes, on fears that the lack of transparency would “disrupt the mechanism,” Andrew Donohue, then head of the SEC’s investment management division, told Bloomberg in a June 2010 interview.
To prevent other investors from mimicking the holdings in their active ETFs, BlackRock will allow large investors to create blocks of shares in exchange for cash, Bloomberg writes.