Exchange-traded funds based on fixed-income indices appear to be near SEC approval. Paul Roye, director of the Security and Exchange Commissions division of investment management, addressed the issue earlier this week at a conference on ETFs sponsored by the American Stock Exchange in New York City.
In June 2001, Barclays Global Investors filed applications for five fixed-income iShares that would be based on Lehman Brothers treasury indices, according to Christine Hudacko, a spokesperson for Barclays (MFMN 7/10/01). At the time, Hudacko anticipated that the SEC would approve the new products in the fourth quarter of 2001, but it didnt happen. The SEC has worked out most of the nuances however, and the products will likely be approved soon, according to Roye.