This year saw the rise of dual share classes in the open-end fund world, allowing funds to create ETF shares of mutual funds and vice versa. Over 80 asset managers sought SEC approval for dual share classes, with Dimensional Fund Advisors being the first granted such relief, signaling a transformative shift in the industry.

Nearly two months after Dimensional received SEC approval to add ETF shares to its mutual funds, the industry is gearing up for a slow rollout of dual share classes. Challenges include adjusting to new reporting structures, limited capital among market makers, distribution hurdles, and strategic considerations for fund boards.

Among the companies granted permission to add share classes in different wrappers, some asset managers are exploring adding mutual fund shares to existing ETFs, particularly to tap into the retirement plan market. F/m Investments is preparing mutual fund shares of its US Treasury 3 Month Bill ETF and Ultrashort Treasury Inflation-Protected Security ETF, potentially paving the way for strategies to enter 401(k)s in 2026.

Read more at Yahoo Finance: Dual Share Classes Are 2025’s Single Biggest ETF Development