On September 3rd, AdvisorShares, the Bethesda, Maryland based provider of actively-managed ETFs, filed a withdrawal request with the SEC to withdraw the registration for two Active ETFs – the Emerald Rock Low-Priced Focused Growth ETF (NYSE:LOWP) and the Emerald Rock Dividend Growth ETF (NYSE:DIVI). No reasons were specified for the withdrawal other than that the company decided not to pursue registration of the securities at this time.
AdvisorShares had filed an amended 485POS document with the SEC in June of this year which included a preliminary prospectus for the two funds. The funds were to be sub-advised by Emerald Rock Advisors, which was founded in Nov 2009. LOWP was intended as an actively-managed fund that would focus on small-cap securities, specifically those priced below $35/share and having a market cap below $500 million. In contrast, DIVI was intended to invest in strong, dividend paying companies and would have looked to outperform the total return of the S&P500.
Despite the withdrawal of these two funds, AdvisorShares still has three actively-managed ETFs that are still under filing with the SEC, each one with a different sub-advisor. In the past year, two new funds have made it to market from AdvisorShares’ pipeline – the Mars Hill Global Relative Value (NYSE:GRV) and the WCM/BNY Mellon Focused Growth ADR (NYSE:AADR). Of these, GRV in particular has tasted some success, quickly becoming the largest actively-managed equity ETF in the US as it stood at about $43 million in assets, at the end of August.
Shishir Nigam is the founder of ActiveETFs | InFocus (http://www.etfshub.com/), which provides extensive coverage and analysis of actively-managed ETFs in US and Canada, including debates on major industry trends, insights on the latest product launches from issuers in the Active ETF space as well as in-depth interviews with industry executives and thought leaders.
Disclosure: No positions in above-mentioned names.
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