BlackRock Seeks Approval for ETF Classes

By Suzanne McGee

(Reuters) – BlackRock Inc (NYSE:BLK) filed an application with the U.S. Securities & Exchange Commission (SEC) to create exchange-traded fund (ETF) classes for its mutual funds.

The asset management giant is the latest and the largest among over 30 money managers that have made similar requests since Vanguard’s patent on the ETF share class structure expired in May 2023.

The SEC has no deadline to rule on these applications and currently has only allowed Vanguard to offer both exchange-traded shares and traditional units within the same mutual fund.

Cboe Global Markets (NYSE:CBOE) is advocating for the SEC to make a ruling by seeking approval for a rule change that would allow it to list and trade ETF share classes. Regulators must respond to such rule-change requests within 240 days, which would be toward the end of 2024.

Dimensional Fund Advisors, one of the pioneers in filing for ETF classes for its mutual funds last year, has received letters of support from several hundred financial advisers managing $3 trillion in investor assets.