From Yahoo Finance: 2025-05-06 08:00:00

U.S. semi-transparent ETF model providers Precidian and Blue Tractor are eyeing business in Europe after regulatory stances on transparency relaxed. Asset managers in the U.S. must use approved models or develop their own to deliver investment strategies via an ETF without daily disclosure of full portfolio holdings.

Precidian, Blue Tractor, and NYSE have developed semi-transparent ETF templates. Precidian is working on a new structure acceptable to regulators on both sides of the Atlantic. Blue Tractor’s Shielded Alpha model discloses portfolio constituents, but published weightings deviate randomly by up to 20%.

Fidelity and Eaton Vance, a subsidiary of Morgan Stanley, opted to roll out semi-transparent ETFs using internally developed structures. Since 2020, only 51 ETFs in the U.S. utilize reduced transparency rules, according to ETFGI data consultancy figures.

T. Rowe Price and American Century offer strategies in semi-transparent form. American Century focuses on strategies managed by Avantis Investors for now, while T. Rowe Price has no current plans in Europe. Semi-transparent ETFs have struggled to attract demand due to limitations on investing only in U.S. securities.

Natixis converted all semi-transparent ETFs to full transparency in 2024. As of Q1, semi-transparent ETFs held $17 billion in AUM, just 1.8% of U.S.-listed active ETF assets, according to ETFGI.

Read more: US Semi-Transparent ETF Players Plot New Expansion in Europe