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Stock impact report

UPDATE 1-Cboe seeks SEC approval for ETF share class of mutual funds [Yahoo! Finance]

Vanguard Short-Term Treasury ETF (VGSH) 
Company Research Source: Yahoo! Finance
that would allow issuers to add an exchange-traded fund share class to existing mutual funds, the exchange said on Thursday. If approved, asset managers could offer exposure to existing mutual fund portfolios through an ETF, similar to the way they make mutual fund share classes with different fees and other features available now. "Adding an exchange-traded share class gives investors more options," said Rob Marrocco, global head of ETP listings at Cboe. SEC approval would allow issuers to more easily add ETF products that share the record of an existing mutual fund rather than launching new funds, analysts said. "Both the number of ETFs and ETF assets could soar" if the SEC approves Cboe's request, said Todd Sohn, ETF analyst at Strategas LLC. Vanguard Group's patent on the share class concept expired in May 2023. Since then, eight other asset managers have sought SEC approval to replicate the model, including Dimensional Fund Advisors, Morgan Stanley and Fidelity. Other Show less Read more
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