A fintech startup that helps active asset managers fit their strategies into ETFs is working on several capabilities upgrades.

Simon Goulet Blue Tractor Group Co-Founder

"We have applied to expand our investable universe to fixed income, foreign equities, and derivatives and options," all for the Shielded Alpha active ETF structure, Simon Goulet, co-founder of Blue Tractor, tells MFWire.

Then last month, the Blue Tractor folks filed with the SEC for exemptive relief to offer custom ETF baskets negotiated with specific market makers, "giving fund managers more flexibility" in terms of cost, operations, and taxes, Goulet says. He notes that the December 2019 ETF rule blessed custom baskets for traditional ETFs. Now they're aiming to do the same thing Shielded Alpha ETFs.

So far, seven firms (of which five have been publicly disclosed) have signed on to the Shielded Alpha structure so far.

"We want to continue to grow our licensee base, of course," Goulet says. 

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