FYI: Exchange-traded funds looking to tap some of the hottest investment trends are going undercover.
A growing number of thematic ETFs are changing their identities before they even start trading to conform to a decades-old rule that dictates what issuers can and can’t call their strategies. More than a third of such funds started last year tweaked their names during the regulator’s approval process, filings show; one fund that initially included blockchain in its name is now described as a “transformational data sharing” ETF.
It’s all part of the U.S. Securities and Exchange Commission’s attempt to get a handle on the rapid proliferation of funds offering investments in everything from 5G networks to electric cars and video games. More than 10 percent of new ETFs last year targeted a theme, and assets in these funds have nearly tripled between 2014 and 2018. That’s put the regulator on high alert.
Regards,
Ted
https://www.bloomberg.com/news/articles/2019-04-12/sec-cracks-down-on-etf-names-that-could-be-misleading-investors?srnd=etfs
