Increased Access to ETFs

The timing is auspicious for the growth of ETFs with the recent announcement by The Vanguard Group coupled with the more lax regulations to enter the ETF space with the SEC’s recent announcement of Rule 6c-11–a rule that would “exempt exchange-traded funds (‘ETFs’) from certain provisions of [the Investment Company Act of 1940]and our rules” and “permit certain ETFs to begin operating without the expense and delay of obtaining an exemptive order from the Commission.”

Related: Vanguard to Move Big Bond ETF to Nasdaq from NYSE

With more ETFs entering into the marketplace and possibly more firms following suit with The Vanguard Group’s elimination of fees, the investment environment could see increased inflows of capital into ETF products.  Of course, firms will have to offer investors more in terms of differentiating their products in order to be standouts in what could be a flooded ETF landscape.

For more trends in the ETF marketplace, click here.

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