Fund of Funds Use of ETFs

Exchange traded funds (ETFs) are still growing  in popularity, especially among asset allocation firms.  Abundance Technologies of Cincinnati has filed for exemptive relief of SEC regulations which limit how much mutual funds can invest in funds that are offered by unaffiliated shops. This will pave the way for a new fund-of-funds offering that will include ETFs as an underlying investment. Tom Leswing of Ignites.com reports this will create the Free Market U.S. Equity Fund, Free Market International Equity Fund and the Free Market Fixed Income Fund. Ultimately, this will provide asset allocation services with the funds for smaller investors. The exemptive relief action will specify that the funds use a variety of open-ended funds and unit investment trusts, including ETFs.