“The current process to launch an ETF is complex – the new SEC proposal will hopefully make it a more level playing field for all,” Lydon said. “There are dozens of ETF issuers who currently operated under different requirements – easing the rules for low-risk ETFs is a great next step for the industry.”
The ETF market for U.S. listed funds has amassed roughly 2,200 funds available for retail and institutional investors.
Driven by relatively low fees, convenience, and transparency, the pace of growth in the ETF industry has been extraordinary.
“ETFs are driving investor progress by helping tens of millions of people generate wealth and meet retirement goals,” BlackRock said on a statement on Thursday. “That is why BlackRock has long supported regulation of the ETF market that enhances transparency, market quality and choice for investors. We look forward to reviewing the proposal in more detail and commenting in due course.”
In the last 10 years alone, assets have grown by a compound annual growth rate of 23% per year, or 547% cumulatively.
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