Fundsters who work with exchange-traded funds governed by the 1940 Act may be able to breath a sigh of relief. IndexUniverse
's Dave Nadig ponders
the ETF insider trading investigation brought to light last week and points to one two-stock, non-'40 Act ETF, B2B Internet HOLDRS
, as the likely instigator of the SEC
ETF insiders may want to cross their fingers that the SEC gets IndexUniverse's message; in the trade pub's view, "ETF stripping" is "just too hard a game to play once you add a few dozen securities to the portfolios ... Huge pain, huge commissions, and with an audit trail as wide as the autobahn."
Neil Anderson, Managing Editor
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