An SEC division said it wouldn’t recommend enforcement action in certain scenarios against exchange-traded funds that passively exceed concentration limits in a specific industry.
The Securities and Exchange Commission issued its no-action letter Monday in response to a question posed by the Investment Company Institute about market values that may cause an ETF’s investments in a particular industry or group of them to exceed 25% of its assets.
The SEC’s Division of Investment Management in the letter confirmed it wouldn’t seek enforcement action in three situations outlined by the ICI, including when an ETF issuer receives a pro rata creation …
Read More: SEC Issues Relief for ETFs Exceeding Industry Concentration Caps
