The SEC Opens the Door for Asset Managers to Add ETFs to Mutual Funds

Changes in the Regulatory Framework

Date:

Canva

Author: Funds Society, Madrid

The idea is to allow a mutual fund to offer investors participation in its investment portfolio in the form of an exchange-traded product, known as an ETF share class

Investors would be able to buy and sell shares of the exchange-traded mutual fund throughout the day at market price

“It’s a signal that the Commission is willing to reexamine outdated restrictions, embrace innovation, and consider an exemption that could equally benefit investors,” stated SEC Commissioner Mark Uyeda