Bear Stearns Asset Management on March 18 will introduce an actively managed fixed-income ETF, an enhanced-cash fund called YYY, or Triple-Y, composed of a variety of short-term instruments. The expense ratio is 35 basis points, according to Margo Cook, senior managing director and global head of BSAMs institutional business. That compares favorably to a retail mutual fund, which typically charges around 65 basis points, she said. Its a cost-effective way to buy a cash-enhanced vehicle, Ms. Cook said. The ETF will offer transparency of holdings every day on the Internet, according to a news release. The fund received SEC approval and will trade on the Amex, Ms. Cook said.
Other actively managed ETFs will follow, Ms. Cook said. Were talking about a global family of Triple-Ys, looking at sterling or euro-based enhanced cash products, she said. BSAM will also develop actively managed ETFs for some equity asset classes, she said.