NEW YORK (TheStreet) -- Eaton Vance (EV) shares are up 16.15% to $43.58 in market trading on Friday after the investment fund management firm became the first fund company to win approval from the SEC for nontransparent ETFs.
The new type of fund structure allows the Boston, Mass-based company to trade ETFs on an exchange but exempts it from having to disclose its holdings. The company said that it plans to launch 18 such funds over the next few months.
Last month the SEC rejected a similar bid from BlackRock (BLK) , the world's largest asset manager, so this ruling marks a reversal from the commission's previous stance.
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TheStreet Ratings team rates EATON VANCE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EATON VANCE CORP (EV) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."