BlackRock to Vanguard Earn ETF Win in Fund Liquidity Rule

Many exchange-traded funds will avoid some aspects of sweeping new U.S. regulations meant to ensure that asset managers can easily meet investors’ redemption demands.

The Securities and Exchange Commission had originally lumped ETFs in with mutual funds last year when proposing the rules, which try to make sure that firms can more easily sell assets to meet demands from investors who want to cash out during market downturns. ETF providers had pushed back on the inclusion, with BlackRock Inc., the world’s largest asset manager, arguing that the structure of many ETFs makes them more liquid than mutual funds. Vanguard Group ...