Ivy Launches its First Three NextSharesTM Exchange-Traded Managed Funds
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"NextShares represent another step in our effort to provide clients with unique, progressive investment products. We are pleased to be one of the first firms to bring them to market," said
The three Ivy NextShares, effective today, include: Ivy Energy NextShares, which invests at least 80% of its net assets in securities of companies within all aspects of the energy sector, such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources. The portfolio typically will hold 50 to 65 stocks. It is managed by veteran portfolio manager
"We congratulate Ivy on the launch of their three NextShares funds," said
NextShares, an innovative way to invest in actively managed strategies, offer the potential for benchmark-beating returns by applying their managers' proprietary investment research. As exchange-traded products, NextShares may offer cost and tax efficiencies that have the potential to enhance shareholder returns. NextShares may invest across all fund asset classes and are expected to be offered by a range of well-known asset managers.
NextShares are currently available through Folio Investing and Folio Institutional, leading online brokerage services.
The first NextShares funds were launched by
Shares of NextShares funds are normally bought and sold in the secondary market through a broker, and may not be individually purchased or redeemed from the fund. In the secondary market, buyers and sellers transact with each other, rather than with the fund. NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through Authorized Participants. In such transactions, a fund issues and redeems shares in exchange for the basket of securities, other instruments and/or cash that the fund specifies each business day. By transacting in kind, a NextShares fund can lower its trading costs and enhance fund tax efficiency by avoiding forced sales of securities to meet redemptions. Redemptions may be effected partially or entirely in cash when in-kind delivery is not practicable or deemed not in the best interests of shareholders. A fund's basket is not intended to be representative of the fund's current portfolio positions and may vary significantly from current positions. As exchange-traded securities, NextShares can operate with low transfer agency expenses by utilizing the same highly efficient share processing system as used for exchange-listed stocks and ETFs.
Keywords for this news article include: Ivy Investments, Finance and Investment, Investment and Finance.
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