Secret-Strategy Funds Struggle to Win Fans in Their First Year
- Active nontransparent ETFs gain $1.2 billion since April 2020
- High costs, short track records keep investors from jumping in
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They were a hot new thing in an industry known for innovation. But in a year when practically everything on Wall Street boomed, exchange-traded funds that hide their strategies struggled to make a mark.
Active nontransparent ETFs -- known as ANTs -- are touted by proponents as the key to sucking yet more assets from the mutual-fund world. They merge the access and tax advantages of ETFs with the magic of active management, letting stock pickers deploy their investment playbooks without fear of front-running or copycats.