| Established mutual-fund companies seeking to add exchange-traded funds to their lineups have a challenge: They need to find a cost-effective way to launch the products in a market where Vanguard Group has one potential design locked up.
More than a decade ago, Vanguard pioneered the idea of offering ETFs as a separate share class of existing mutual funds to create economies of scale and keep costs low. The Malvern, Pa., firm later secured a patent on the structure and so far has kept a monopoly on it............................................Full Article: Source
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