Talks of forming an independent organization for exchange traded funds (ETFs) is being put in to action. The association would allow the industry to have a proactive voice for ETF businesses.
The founder of The Mutual Fund Education Alliance hopes to announce the creation of a much-anticipated organization for ETFs next month, writes David Hoffman for InvestmentNews. A number of leading ETF issuers have already agreed to become members of this new ETF Council Inc. [ETF trade group: Is it necessary?]
Irving L. Straus, chairman of Straus Corporate Communications, has been very vocal in the need for the ETF industry to have an organization that has the industry’s best interests at heart.
Straus points to recent regulatory actions in the ETF marketplace as an example of why the ETF industry needs its own trade organization that will be proactive in marketing ETF businesses.
ETF providers are currently being represented by the Investment Company Institute (ICI), which primarily focuses on the mutual fund industry. The ETF organization, Straus says, will work in unison with the ICI and not compete against it.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.
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