CORRECTED - BlackRock proposes new ETF unit for active funds

Fri Sep 2, 2011 12:38pm EDT

* 13 new active ETFs would be run by new division

* Funds would disclose holdings quarterly (Corrects third paragraph to eliminate reference to competition with iShares)

BOSTON, Sept 2 (Reuters) - Money management giant BlackRock Inc (BLK.N) asked regulators for permission to set up a new unit offering actively managed exchange-traded funds that would not disclose their holdings on a daily basis.

In a filing with the U.S. Securities and Exchange Commission late on Thursday, BlackRock said the new unit, Spruce ETF Trust, would manage 13 equity funds and reveal their holdings only on a quarterly basis, like ordinary mutual funds.

New York-based BlackRock's iShares division is the world's largest ETF manager with $632 billion of assets.

The iShares unit received permission from the SEC in March to open actively managed ETFs that would disclose their holdings every day, just like more common index-based ETFs. (Reporting by Aaron Pressman; editing by John Wallace)

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