According to the press/review article, active ETFs are at a critical stage before their issuance. On 17 July, the first 18 product distribution applications were submitted and accepted, followed by a process of feedback, including inquiries, before they could be officially released.
How to "active" the product
This type of product retains the ETF ' s in-situ trading mechanism but no longer follows a fixed index, but is left to the discretion of the fund manager. The article argues that it combines proactive management and the operation of ETFs and represents a rare product innovation in the public sector in recent years.
More transparent disclosure and transactions
The disclosure of the active equity ETF is more intensive than that of the traditional active fund. Under the relevant arrangements, the Fund will disclose a portfolio on a daily basis and provide a net reference value on board. Investors can sell directly in secondary markets, and foreclosure links are closer to the regular operations of the ETF.
The first group covered 18 institutions.
The first pilot projects covered 18 fund managers, with 9 applications for listing each of the places. In the list of institutions such as Freida, Huai-Chae, Hua-Aan, Rejoining Rich, the South, the Rich and Peng-Wa, some of their product names indicate their style preferences for value, balance, dividends or growth.
Market acceptance remains to be observed.
At the same time, it was mentioned that while active ETFs bring greater transparency and trading attributes, the capacity of fund managers, team operations and the level of tariffs still affect product performance and market acceptance.