Apr 19, 2021

A-tisket, a-tasket, a custom ETF basket—passive, active & semi-transparent

In September 2019, the Securities and Exchange Commission (SEC) approved Rule 6c-11 under the 1940 Act, which will allow most exchange-traded funds (ETFs) to operate without the expense and delay of obtaining an exemptive order. The new rule provides greater flexibility to all issuers looking to launch new products filed as open-end funds in a streamlined approval process with a quicker time to come to the market. The new rule applies to both index-based and actively managed transparent ETFs. This rule cannot be applied to leveraged/inverse ETFs, unit investment trusts, master-feeder funds or share class ETFs.