SEC Grants Exemptive Relief Allowing Fund to Operate as "ETFs of ETFs" (Fed Reg.)

The SEC granted exemptive relief to two exchange-traded funds ("ETFs") from the requirement of SEA Rule 10b-17 to give notice, and the anti-manipulation and bidding and purchasing prohibitions of Rules 101 and 102 of Regulation M. The granting of the exemptive relief was published in the Federal Register.

The relief allows each fund to provide investment results that correspond closely to the performance of an underlying index by investing in the component securities of the applicable index using indirect investments through an applicable underlying ETF. Each fund also will enter into a forward currency contract designed solely to hedge against that fund's exposure to fluctuations between the applicable non-U.S. currencies in its underlying index and the U.S. dollar.