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First Ever Active ETF Will Close
September 12, 2008
SAN DIEGO (ETFguide.com) - On March 18, 2008 Bear Stearns quietly introduced the first ever actively managed ETF. The circumstances surrounding Bear Stearns' launch of the Current Yield Fund (AMEX: YYY) were less than ideal from the get-go.
Bear Sterns beat PowerShares to the punch and gained first movers status on the first ever actively managed fund. Unfortunately, this break through moment for ETF market place was choked by the unraveling financial crisis and Bear Stearns’ integration into JP Morgan at wholesale prices.
YYY was commonly deemed and translated into; why, why, why?
Bear Stearns was not able to attract any new money with YYY and was outmaneuvered by a crafty PowerShares marketing team. In contrast to YYY, PowerShares launch of the second actively managed ETF was broadcasted all over.
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Even with all the publicity, PowerShares’ suite of active ETFs has hardly been able to attract significant assets. The PowerShares Active Alpha Multi Cap Fund (NYSEarca: PQZ), PowerShares Active AlphaQ Fund (NYSEarca: PQY), PowerShares Active Mega Cap Fund (NYSEarca: PMA) and PowerShares Active Low Duration Fund (NYSEarca: PLK) combined account for only $17.09 million.
Actively managed ETFs, especially actively managed bond ETFs, might receive a much needed boost from the biggest name in bond management. PIMCO has filed to come out with index based and actively managed bond ETFs. PIMCO’s much heralded manager Bill Gross manages the successful $100+ billion PIMCO Total Return Fund (PTTRX).
YYY is expected to cease trading on or around October 1, 2008 and will mark the 40th closing of an ETF. XShares Advisors, Claymore, Ameristock and MacroShares decided to close ETFs already earlier in 2008.
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