Investors argue against novel ETF label in letters to US SEC
SPY•Issuers say the label is too vague
"We believe that 'Novel ETFs' cannot be effectively defined," wrote Angela Brickl, chief operating officer and general counsel of Rafferty Asset Management, whose Direxion business offers a wide array of leveraged single-stock and leveraged index ETFs, in the firm's submission to the SEC.
"A definition keyed to today's list of new asset classes will be obsolete on arrival, because tomorrow's innovations will fall outside of it," Brickl said. That limitation will penalize every new idea or product modification, she said.
The SEC did not immediately respond to a request for comment.
Few letters address prediction-market ETFs
Only a handful of those who filed comment letters as of Monday's deadline addressed the question of how to treat ETFs tied to prediction markets. Douglas Crescenzi, chief operating officer of Adjacent Markets, which builds indexes tied to event contracts, urged regulators to treat them like any other ETF.
