Grail Advisors Plans Actively Managed Money Market ETF

Grail Advisors, one of the first ETF issuers to enter the actively managed ETF arena, is planning an actively managed money market ETF that will invest in short-term fixed-income securities. The ETF, for which no ticker was disclosed, is expected to have an expense ratio of 0.3%. The Grail ETF will compete with the PIMCO Enhanced Short Maturity Strategy ETF MINT, which was introduced in November and has accumulated $178.5 million in assets, an impressive haul in that brief amount of time. MINT has an expense ratio of 0.35% meaning the Grail ETF could steal some of MINT's thunder when it hits the market. The Grail ETF will invest in U.S. Treasuries, agency debt, asset-backed and mortgage-backed instruments, commercial paper and other highly-rated fixed income fare. Grail's other ETF offerings include the Grail McDonnell Intermediate Municipal Bond ETF GMMB and the Grail McDonnell Core Taxable Bond ETF GMTB.