The proliferation of Active ETFs is creating many questions and challenges for mutual fund boards and product teams. The latest generation of Active ETFs are often compared to similar products in an existing mutual fund wrapper, yet we find that investment strategy may vary, from being near-duplicates to being only somewhat similar. Our conversations with both fund boards and management follow a similar path: how do—and why should—the governance, pricing, and distribution decisions of active ETFs differ from traditional active funds? 

In our study “All in the Family: Active ETF Clones, Siblings, and Cousins” Broadridge:

• Defines criteria to segment Active ETFs into Clones, Siblings, and Cousins

• Evaluates pricing differences between Active ETFs and similar mutual funds

• Highlights considerations for product teams and boards while launching Clones, Siblings, and Cousins and details considerations for on-going oversight and governance