The Cboe BZX Exchange, Inc. has proposed a rule change that allows specific Fidelity exchange-traded funds (ETFs) to operate using both a "Semi-Transparent Sleeve" and a "Fully-Transparent Sleeve." This change gives these funds flexibility to invest in a wider range of securities, including foreign investments, derivatives, and fixed income securities. The proposal aims to increase transparency for investors, as the fully transparent part of these funds would disclose their holdings daily. The change is considered non-controversial and is expected to improve transparency and competitiveness without imposing a significant burden on competition.
Simple Explanation
The Cboe BZX Exchange wants to change some rules so that certain Fidelity funds can invest in more kinds of things, like stocks from other countries or bonds, and some parts of these funds will show what's inside every day. This is meant to help people understand better what they're buying, but the document doesn't explain much about what this means for the people who own these funds.