(Bloomberg) -- Neuberger Berman is planning to convert its only US commodity mutual fund into an ETF, the latest asset manager hopping on a trend expected to pump $1 trillion into the ETF ecosystem.
The $233 million Neuberger Berman Commodity Strategy Fund (NRBAX) is set to become an active, fully transparent ETF in the fourth quarter of 2022, according to regulatory filings. The switch brings Neuberger Berman’s exchange-traded fund lineup to four, and will instantly boost its assets in the industry. The company’s first ETFs, launched in April, have only managed to gather a combined $16 million in assets so far.
The New York-based firm joins an array of asset managers that have already shifted billions from mutual funds into generally lower-cost, more tax-efficient ETFs. Dimensional Fund Advisors executed one of the first formal conversions in 2021. JPMorgan converted four mutual funds this year, while smaller shops including Guinness Atkinson and Motley Fool have also made the switch.
“Neuberger Berman is clever in cautiously testing ETF ground while protecting their existing mutual fund lineup,” said Henry Jim, a Bloomberg Intelligence ETF analyst. “If the conversion pans out they may consider converting others.”
In the coming decade, more than $1 trillion worth of mutual fund assets could be converted into ETFs, according to an analysis by Bloomberg Intelligence. That would be a huge boost to the $6.5 trillion US ETF market, though it’s only a fraction of the mutual fund world.
Roughly $598 billion has exited mutual funds in 2022 so far, data from the Investment Company Institute show. Meanwhile, ETFs have raked in over $369 billion this year, though the pace has slowed from 2021’s record influx, according to Bloomberg compiled data.
A spokesperson for Neuberger Berman confirmed the plans in emailed comments, adding that the firm intends for the conversion to take place on or around Oct. 14, 2022. The expense ratio of the new fund will be 0.65%, cheaper than fees on the various share classes of the mutual fund.
Take a look at our comprehensive guide to the best and most popular information ebooks and products available today on Detoxing, Colon Cleansing, Weight Loss and Dating and Romance. They are all in one spot, easy to find and compere to make a quick selection for the product that best fits your needs or wants.
So browse through a category and make your preferred selection and come back here to read more choice articles and get a few more helpful tips on ways to help your enhancement.
As an Amazon Associate I earn from qualifying purchases. “saubiosaubiosuccess.com is a participant in third party affiliate and advertising programs; The Amazon Services LLC Associates Program, Awin network, and other affiliate advertising programs are designed to provide a means for sites to earn advertising fees and commissions by advertising and linking to products on other sites and on Amazon.com. Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.”
We use anonymous cookies and various 3rd-party services to optimise and to offer you a better, more personalised, browsing experience with advanced accessibility enhancements.
Dismiss
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
