Active ETFs need transparency to compete

Active ETFs require transparent and efficient servicing

Actively managed exchange-traded funds (ETFs) that aim to outperform a given benchmark need transparent and efficient servicing processes to be competitive, according to State Street.

The firm's latest Vision Focus report says active ETFs have high growth potential and have "piqued the interest" of many market participants since emerging in 2008.

State Street says although active ETFs have been slow to catch on, they are already changing the way ETFs are serviced. This is largely because an