SEC Rejects S&P Move to Stall Vanguard's Vipers

The Securities and Exchange Commission summarily dismissed an attempt by Standard & Poor's to stop Vanguard from offering an exchange-traded version of its S&P 500 index fund.

Earlier this year, S&P sued Vanguard for trademark infringement, claiming the mutual fund giant is not authorized to use the S&P 500 name in its lineup of exchange-traded funds, known as Vipers. Vanguard contends the S&P 500 Vipers are just another class of its existing (VFINX Quote)Vanguard 500 Index fund, which has a license to use the S&P 500 name.

Exchange-traded funds are pools of securities that, unlike traditional mutual funds, are priced throughout the trading day and can be bought and sold like stocks. They have proved popular with many index-fund investors because of their low expense ratios and tax efficiency. Because of their unique structure, exchange-traded funds can't be offered without an SEC order exempting them from certain securities laws. ...