Active Funds and Other Changes in the ETF Industry  by Tom Lydon
and Charles Rotblut, CFA  Tom Lydon is editor and publisher of
the ETF Trends website. I spoke with Tom recently about
developments in the exchange-traded fund (ETF) universe.
Charles Rotblut (CR): It seems that, in part, the future growth
in actively managed exchange-traded funds will be dependent on
how the SEC applies the so-called ’40 act. Can you provide a
brief explanation of what this act is and how it applies to
ETFs?  Tom Lydon (TL): The Investment Company Act of 1940 set
standards by which investment companies should be regulated. The
standards dictate how investment companies operate (promotion,
reporting, requirements, pricing and allocation). The Dodd-Frank
Act of 2010 overhauled the 1940 act to provide more
consumer/investor protection and uniform standards for products.
JOIN TODAY for just $29. Log in  Register for FREE to read this
article and receive access to future articles. Tom Lydon is
editor and publisher of ETF Trends (