T Rowe Price has decided not to use derivatives in any active exchange-traded funds (ETF) it launches, Index Universe reports. The Maryland-based mutual fund firm will stop using options and futures contracts and swap agreements from its funds. T Rowe Price’s first fund will be the T Rowe Price Diversified Bond ETF, which will target positive total returns with an emphasis on income. Van Eck Global, JP Morgan, Guggenheim, AdvisorShares and Legg Mason have decided to stop the use of derivatives from their actively managed ETFs.
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