It pays to be first: PR lessons from the first ETF share class launch
Key Takeaways:
- The first ETF share class launch was by F/m Investments
- The smaller firm beat larger rivals, and the news was widely covered by both industry and mainstream business sites
- Fund communicators should continue to expect share class launches to dominate the news
In case you missed it, the first share class was launched by F/m Investments on February 12 after the SEC granted several firms relief. This is a first on multiple levels – the first to operationalize an ETF share class, the first of something like 70 firms granted share class relief by the SEC to bring one to market, and the first to enable the share class structure to gain access to 401(k)s.
It’s no surprise that F/m’s release was widely covered by both industry trades like Pensions & Investments and ETF Trends as well as mainstream investment sites like Yahoo Finance, Bloomberg, and Benzinga. Instead of the larger firms launching a share class first such as Dimensional Funds, who received the first share class relief letter from the SEC, it was a smaller firm that was first to come to market. F/m Investments may have been able to move more quickly than others given that TBIL’s investments in cash-like three-month Treasury bills are much easier to operationalize than a more complex equity or multi-asset portfolio with many more nuances and tax implications.
We have written about how we expected interest in the share class topic to continue to accelerate in 2026.
As F/m’s news this week confirms, being among the first is helpful.
A few other points about F/m Investments’ share class launch resonated in news coverage:
- The practical benefits for advisors. Share class and mutual fund versions of the same strategy will have the same performance. This removes the need to reconcile performance that separate funds and ETFs would be slightly different.
- The TBIL share class may open the door to ETFs in 401(k) plans. Bloomberg reported F/m’s CEO Alexander Morris saying this is expected to expand the fund’s reaching into 401(k)s. Retirement accounts rely mainly on mutual funds and separately managed accounts, but having a mutual fund share class of TBIL provides an avenue into that market.
One thing is for sure, communicators need to be prepared to expect widespread coverage of upcoming ETF share class launches and broader coverage of the changing industry dynamics. We’ll continue to pay attention to this story.
Subscribe.
Receive the latest news and insights from Lowe Group.