The SEC is interested in hearing input about:
- the benefits and risks to investors and markets raised by an ETF with an actively managed portfolio
- new regulatory concerns raised by active ETFs.
Currently, all exchange-traded funds are based on various equity indices, which try to match the returns on those indices.
SEC Chairman Harvey Pitt said he was concerned about the amount of time between the call for comments and the agency’s response.
“The commission is often accused of not responding to comments quickly,” Pitt said at an meeting to consider the proposal.