A NEW WAVE OF ETFS IS ON THE WAY

A long-expected decision from the Securities and Exchange Commission is close to being official, and it could mean more exchange-traded fund options for investors.

- BY NELLIE S. HUANG

The regulatory agency issued a notice in September that it intends to grant a request from Dimensional Fund Advisors, pending comments or a hearing request, that would allow DFA to add an ETF share class to its existing mutual fund share classes. The notice is a “meaningful step,” says Aisha Hunt, of Kelley Hunt, a boutique law firm that specializes in ETF initiatives, and formal approval could come “within weeks.” It could ease the way, too, for similar requests from dozens of other firms, including BlackRock and Fidelity. “This is a defining moment for the fund industry,” says Hunt.