US Asset Managers Launch Dual-Share-Class Funds

U.S. asset managers are introducing dual-share-class funds that allow a single portfolio to be offered as both an ETF and a mutual fund ^[1].

This shift removes the traditional trade-off between the two structures. By offering both options, firms aim to provide investors with improved tax efficiency, cost savings, and broader access across retirement and brokerage accounts ^[6].

F/m Investments became one of the first issuers to utilize this structure ^[1]. The firm launched a mutual fund twin for its TBIL ETF, which has a size of $6.4 billion ^[2]. This move follows SEC exemptive relief issued in 2025 ^[3] that paved the way for such hybrid offerings.

Other major players are following suit. Dimensional Fund Advisors launched its first actively managed ETF share class on March 20, 2026 ^[4]. While some reports identify F/m Investments as the first to launch a dual-share-class fund ^[1], other industry sources identify Dimensional as the first to launch an actively managed share-class ETF in the U.S. ^[5].

These structural changes come as the global ETF market continues its growth, reaching $20 trillion in assets ^[6]. The dual-share-class model simplifies product lineups for managers by eliminating the need to run separate, similar funds for different investor types.

Industry experts, including JP Morgan's Funmi Osiyale, said these tools help bridge the gap between traditional mutual fund investors and the liquidity of the ETF market ^[6]. The goal is to allow investors to choose the vehicle that best fits their specific tax or platform needs without changing the underlying asset strategy.