NEW YORK (Reuters) - Eaton Vance Corp has won the last of the approvals it needs from the U.S. Securities and Exchange Commission to launch NextShares, a new breed of exchange-traded funds, the Boston-based company said in a statement.
NextShares, a hybrid between actively managed mutual funds and exchange-traded funds, could start trading as early as February, a spokeswoman said, after the SEC approved the offering documents of 18 such funds.
Funds from at least 11 other managers are expected to follow. Licensees include Gabelli Funds and Columbia Threadneedle Investments.
The launch of the funds had been delayed as Boston-based Eaton Vance awaited the proper approvals and as it attempted to win over distributors.
Like traditional active mutual funds, NextShares will not be required to disclose their holdings on a daily basis as traditional active ETFs must, but will trade on an exchange, like an ETF. While investors can place orders for the funds throughout the day, they will be priced according to their end-of-day net asset value.
Advocates of the funds say they will be cheaper, more tax efficient and better performing than mutual funds.
Reporting by Trevor Hunnicutt; editing by Grant McCool