Investment Companies Seek SEC Permission to Offer "Multi-Class ETF Funds"

Major asset management firms filed applications for exemptions from various provisions of federal securities laws that currently restrict their ability to combine exchange-traded fund share classes and mutual fund shares within a single investment vehicle.

In a published Notice in the Federal Register, the SEC said it is considering applications for Orders that would permit registered open-end management investment companies to operate as "Multi-Class ETF Funds." This structure would allow a fund to offer a class of exchange-traded shares, known as an ETF Class, simultaneously with one or more classes of shares that are not exchange-traded, known as Mutual Fund Classes. The proposed relief covers two primary categories: "ETF Operational Relief," which permits standard ETF operations, and "ETF Class Relief," which specifically authorizes the multi-class structure involving both ETF and mutual fund shares.

Interested persons may request a hearing by January 12, 2026.