The Securities and Exchange Commission (SEC) has received an application to amend a previous order regarding exchange-traded funds (ETFs) managed by Natixis Advisors, L.P. The application seeks to allow these funds more flexibility in the composition of "Creation Baskets," which are collections of securities that investors can use to create or redeem shares in the fund. This change would enable ETFs to include securities not listed in their Proxy Portfolio, with the goal of reducing costs and improving efficiency without negatively affecting the funds or their shareholders. The SEC will grant the order unless a hearing on the application is requested.
Simple Explanation
The government is thinking about changing the rules for some special boxes of toys (called "Creation Baskets") that people use to trade and share in a money game. These new rules would let the toy boxes include different toys than before, which might make playing the game cheaper and more fun for everyone.