ETFs That Hide Their Portfolios Get Go-Ahead From U.S. Regulator

Four new types of exchange-traded funds that allow money managers to hide their holdings have been approved by U.S. regulators.

T. Rowe Price, Fidelity, Natixis and Blue Tractor won permission from the Securities and Exchange Commission to create ETFs that disclose their holdings once a quarter, rather than every day like conventional ETFs. The watchdog indicated in November that it was inclined to approve the applications.

It’s a huge boon for active money managers who’ve watched trillions of dollars flow out of mutual funds and into ETFs over the last decade. Many proved slow to start their own ETFs, fearing ...