09.29.25

SEC Readies Relief for Asset Managers To Add ETFs to Mutual Funds

by: Suzanne McGee

The U.S. Securities and Exchange Commission (SEC) has proposed an order that would allow Dimensional Fund Advisors to add an exchange-traded fund (ETF) share class to an existing mutual fund, a move expected to pave the way for dozens of similar applications. The change follows the 2023 expiration of Vanguard’s patent on the dual-share class model, which lets investors buy ETF shares of mutual funds for greater tax efficiency, lower costs and intraday trading flexibility. Industry experts say the approval could trigger a surge of new ETFs, blurring lines between mutual funds and ETFs while broadening retail investor access.

Read the full article on Reuters