Portfolio transparency is how much of an active ETF's holdings is disclosed, how often, and to whom. Daily or frequent disclosure can aid arbitrage and tighter spreads but can also increase front-running or copycat risk—one of the structural trade-offs of running an active strategy in an ETF wrapper.
Covered in: Active ETFs (book) · Why ETFs Surface Liquidity Constraints Faster Than Mutual Funds
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Go deeper: books by Will Lee, CFA
For ETF product managers, issuers, capital markets teams, and allocators: capacity, execution costs, and liquidity trade-offs when active strategies run in an ETF.
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Disclaimer
This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
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