Market Extra: ‘Fiduciary rule’ may create a $10 trillion exchange-traded behemoth by 2020

The Labor Department’s “fiduciary rule” was designed to help retirement savers, but one of the biggest beneficiaries might be exchange-traded products, including ETFs and ETNs.

The new rules take effect April 10, 2017 and according to one estimate, the market could triple within a few years as a result of its implementation.

“It’s just that ETFs will see a bigger slice of that growing pie, with the immediate beneficiaries being the low-cost, low-risk index structure funds where flows have already been going.”

Frank La Salla, chief executive officer of BNY Mellon’s Alternative Investment Services.

“Because of the unique structure of ETFs, and because of advisers being held to higher standards, we think the market could grow exponentially.

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