iShares is seeking to break into the active ETF market after filing with the US Securities and Exchange Commission (SEC).
The filing reveals details of two initial funds iShares would offer in this space, while paving the way for future launches.
The iShares Active Fixed Income fund will invest primarily in fixed income markets to provide a combination of income and capital growth. The fund will use a proprietary quantitative model to allocate assets among bond sectors.
The filing says the fund will normally invest at least 80% of its assets in ETFs, which track fixed income markets.
The iShares Active Equity fund will offer long-term capital appreciation and will invest in US blue chips, weighted in a transparent quantitative manner to provide risk-adjusted returns.
Both funds will be advised by BlackRock Fund Advisers.
iShares must wait for the SEC to approve the request before the firm can comment.
This year has seen a number of investment heavyweights declare their interest in setting out their stall in this space, including mutual fund specialists such as T. Rowe Price, Legg Mason and Pacific Investment Management Company (Pimco).
With almost 50% of worldwide ETF assets under management, iShares' decision to launch actively-managed ETFs could be a tipping point, some market experts believe.
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