Skip to Content
ETF Specialist

Legg Mason to Try Its Hand at ETFs

The firm has filed to launch actively managed exchange-traded funds.


Another prominent fund shop-- Legg Mason (LM)--plans to join the exchange-traded fund party. The firm filed for exemptive relief on Feb. 22, revealing plans to develop its own suite of actively managed ETFs. At this point, the specific strategies and managers have yet to be determined/disclosed, however, Legg Mason has stated that it is considering both equity and fixed-income funds.

The exemptive relief application process could take several months and is one of the first steps in bringing an ETF to market. If the SEC grants Legg Mason with exemptive relief, we should start learning more about the specifics of the firm's ETF strategy. As of now, the firm isn't planning to convert any of its existing mutual funds into ETFs. Bill Thomas, Grail Advisors CEO, recently disclosed that his firm is close to announcing the conversion of a prominent mutual fund(s) into an actively managed ETF(s). Legg Mason has made clear, however, that this isn't the path it plans to take.

John Gabriel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.