(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