Is Putnam Investments
] getting into the active ETF business? Securities Technology Monitor reports
that Bob Reynolds
, Putnam's CEO, shared his thoughts on Tuesday at the Tiburon CEO Summit XXII in NYC.
"I do think there will always be room for active management and the more people who index, the more inefficient the market becomes. ETFs are great trading vehicles but some of them under perform their benchmarks by 1000 basis points," Reynolds is quoted as saying.
Despite reports to the contrary, Putnam has not yet filed to launch an active ETF.
BlackRock, State Street Legg Mason, and Charles Schwab Corp are a few of the firms that have filed paperwork with the SEC for their own active ETF offerings.
Correction: A Putnam spokesperson said that there were inaccuracies in the Securities Technology Monitor report upon which this article was based. This article has been updated accordingly.
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