September 27, 2017 / 10:42 PM / a year ago

Wells Fargo gets approval for exchange traded index funds

People walk by a Wells Fargo banking location in Pasadena, California, U.S., September 8, 2017. REUTERS/Mario Anzuoni

(Reuters) - Wells Fargo & Co (WFC.N) got initial approval to create exchange traded index funds (ETFs), according to a notice filed by the U.S. Securities and Exchange Commission on Wednesday.

The approval, recommended by the commission’s staff, will go into effect unless the commission orders a hearing.

The approval does not necessarily mean Wells Fargo will launch an ETF. A call to a Wells Fargo spokeswoman was not immediately returned.

The $4.8 trillion global ETF business is dominated by BlackRock Inc (BLK.N) and Vanguard Group, but other companies like Fidelity Investments, Goldman Sachs Group Inc (GS.N) and JPMorgan Chase & Co (JPM.N) have been quickly building their own franchises.

Wells Fargo, the third-largest U.S. bank, is the 16th largest fund complex group, according to a company presentation earlier this year citing Strategic Insight, an industry consultant.

Reporting by Trevor Hunnicutt and Dan Freed in New York; Editing by Sandra Maler

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