Head of Private Investments, Vanguard
The ability of exchange-traded funds to continuously disrupt the investing landscape is expanding, thanks to Daniel McCabe.
Last year, the Securities and Exchange Commission approved his firm's "active nontransparent ETF," or ANT. Unlike traditional ETFs, the novel product removes the requirement for managers to disclose their holdings on a daily basis, and it is designed to be actively managed like a mutual fund.
In clearing the regulatory hurdle, Precidian showcased Wall Street's demand to use a product of this nature moving forward. Goldman Sachs, BlackRock, JPMorgan, and Fidelity are among the major firms that have already entered agreements with Precidian to license or deploy its methodologies in their own products.
ANTs are fulfilling a longstanding need in the mutual fund industry: a product that has ETF-like benefits, and yet is shrouded in the relative secrecy of an actively managed strategy. Precidian's product walks this tightrope and provides a glimmer of hope to fund managers who have been hemorrhaging market share to their more passive, tax-efficient counterparts.