Fidelity Investments is taking a new tack in an industry push for actively managed exchange-traded funds.
The firm’s approach, outlined Thursday in a filing with the U.S. Securities and Exchange Commission, would be modeled on a closed-end fund, a type of fund that issues shares that trade on an exchange but isn’t required to disclose holdings daily.
Fidelity is seeking to modify this structure in a way that would keep the fund’s share price and net asset value more closely linked than is the case with current closed-end funds.
Fidelity’s proposal is the latest in a series of efforts by fund companies to get around an SEC requirement that ETFs disclose their holdings daily, so that their shares can be priced efficiently by market makers and broker-dealers. Fund companies say the requirement makes it difficult to offer actively managed funds, because competitors would be able to copy them.