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UBS Gives its Financial Advisors Access to NextShares

November 27, 2017

UBS has added NextShares’ exchange traded managed funds to the list of securities available to its brokers, WealthManagement.com writes.

UBS is the first wirehouse to give its advisors access to the funds, which resemble ETFs but are actively traded and aren’t held to daily holdings disclosures, according to the web publication. The product is appealing to active managers who don’t want to reveal their holdings while still retaining the price advantage of ETFs, WealthManagement.com writes.

For advisors who still like active management, the product presents a more tax-efficient alternative to mutual funds, which require more cash holdings, Todd Rosenbluth, director of ETF and mutual fund research at CFRA, tells the web publication.

Navigate Fund Solutions, a subsidiary of Eaton Vance, began developing the product in 2011 and first rolled it out early last year, WealthManagement.com writes. According to Navigate, NextShares’ lower operating expenses and trading costs mean they could outperform the mutual fund versions of such active strategies by an estimated 63 basis points, according to the publication.

NextShares distribution partners already include Folio, Envestnet and Interactive Brokers Group, but the product is likely to reach a wider audience with UBS now joining the ranks of distributors, WealthManagement.com writes.


The funds are now available across UBS’s brokerage platforms as well as its non-discretionary advice platform UBS Strategic Advisor, according to the publication.

But while many of UBS’s 6,800 advisors could theoretically use them, it could take some time to learn the funds’ peculiarities, Rosenbluth tells WealthManagement.com.

By Alex Padalka
  • To read the WealthManagement.com article cited in this story, click here.