‘Non-transparent’ ETFs set to be a boon for fund managers

https://www.ft.com/content/8d880f4a-6031-11e9-a27a-fdd51850994c

Buying stocks has traditionally meant making selective bets or buying an entire index — an increasingly popular approach that catapulted the exchange traded fund to prominence. Now, a new ETF is seeking to extend the benefits of this tool to traditional fund managers, by enabling them to hide what lies inside. This breed of ETF bundles up stocks into easy-to-trade packages, but adds a surprise. Generally, ETFs reveal their holdings every day, but some products that gained provisional US regulatory approval this month are able to keep the contents under wraps for a month or even a quarter.

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