U.S. SEC Set To Approve Rule Change Banning Deceptive Labeling Of Funds That Appear To Target 'Growth', 'Value' Assets Or ESG Investments; Under Rule Change, Funds Would Have To Keep 80% Of Assets In The Kind Of Investments Suggested By Their Names
Portfolio Pulse from Benzinga Newsdesk
The U.S. Securities and Exchange Commission (SEC) is set to approve a rule change that will ban deceptive labeling of funds that appear to target 'growth', 'value' assets or ESG investments. Under the new rule, funds would be required to keep 80% of their assets in the kind of investments suggested by their names.
September 20, 2023 | 2:02 pm
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NEUTRAL IMPACT
The rule change by the SEC could impact SPY if it has been using deceptive labeling. It will now have to ensure 80% of its assets align with its name.
The rule change by the SEC could potentially impact SPY if it has been using deceptive labeling. The fund will now have to ensure that 80% of its assets are in line with the kind of investments suggested by its name. This could lead to a reshuffling of assets within the fund, but it's unclear at this point how this will affect the fund's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50