F/m and RBB Usher in New Era with Hybrid ETF-Mutual Fund Launch

NEW YORK, NY – February 12, 2026 – In a move that signals a seismic shift for the asset management industry, F/m Investments, in partnership with The RBB Fund Complex, has successfully launched the first investment product under a modern SEC order that exists simultaneously as a mutual fund and an exchange-traded fund (ETF). The historic first trade of this multi-share class structure marks a new chapter in product design, potentially reshaping how investors access strategies and how managers bring them to market.

The groundbreaking product offers two distinct entry points into F/m Investments' flagship TBIL U.S. Treasury 3-Month Bill strategy. Investors can now choose between an ETF share class trading under the ticker TBIL or a traditional mutual fund share class with the ticker TBFMX. Both wrappers are part of a single, unified portfolio with one set of holdings, one management team, and one track record, a structure many in the industry have long considered a "holy grail."

A Regulatory Game-Changer

This launch is the culmination of a complex regulatory journey that began in 2023, following the expiration of a long-held patent by industry giant Vanguard. For decades, Vanguard was the only firm able to offer ETF shares of its mutual funds, a structure that contributed significantly to its growth. The patent's expiration in May 2023 opened the floodgates, with reports of over 50 asset managers filing applications with the Securities and Exchange Commission (SEC) for similar exemptive relief.

F/m and RBB are the first to bring a product to market under the new wave of approvals, operating under an exemptive order for their application (File No. 812-15501) pursuant to the Investment Company Act of 1940. This order permits them to offer both ETF and mutual fund classes that are compliant with the SEC's "ETF Rule" (Rule 6c-11). The approval follows a model set by Dimensional Fund Advisors, which received a similar order in late 2025, but F/m's launch represents the first live implementation and trade, turning regulatory theory into market reality.

"We are thrilled to see Alexander Morris and the team at F/m Investments continue to break new ground,” said Arnold Reichman, Chairman of the RBB Board, in a statement. “Their work exemplifies a forward-thinking approach to the evolving landscape of ETFs and mutual funds."

One Strategy, Two Doors for Investors

For financial advisors and their clients, the dual-share structure promises to solve long-standing dilemmas. The core benefit is choice without compromise. An investor can now access the exact same 3-Month Treasury bill strategy through the wrapper that best suits their needs.

The ETF share class offers the intraday liquidity, trading flexibility, and potential tax advantages that have made ETFs wildly popular. Through their unique in-kind creation and redemption process, ETFs can often purge embedded capital gains, a benefit that could now extend to the entire fund. This mechanism may reduce or even eliminate taxable capital gains distributions for all shareholders, including those in the mutual fund class.

Meanwhile, the mutual fund share class provides a familiar structure that integrates seamlessly into platforms where ETFs may not be available or practical, such as certain retirement and 401(k) plans. This allows advisors to use a single, consistent strategy across a client's entire household, regardless of account type.

Housing both share classes within one portfolio also creates immediate economies of scale, potentially lowering operating costs for all investors. However, the structure is not without its complexities. Industry experts note potential challenges, such as ensuring that cash flows from the mutual fund side do not create "cash drag" that could dilute performance for ETF investors. Furthermore, the operational backend for converting shares between the two classes is still in its infancy, currently requiring manual, labor-intensive processes that the industry must work to automate for the model to scale effectively.

A Blueprint for the Future of Asset Management

The F/m launch is being closely watched as a proof of concept for the entire industry, particularly for active managers. For years, traditional mutual fund providers have faced persistent outflows as investors flocked to lower-cost, more tax-efficient ETFs. This new structure provides a pathway for them to enter the booming ETF market without abandoning their existing mutual fund products and client base.

By attaching a new ETF share class to a well-established mutual fund, managers can instantly grant the ETF a sizable asset base and a proven performance track record, overcoming the critical early hurdles that new ETFs often face. This gives them access to a much wider range of distribution channels, from wirehouses that favor mutual funds to RIA platforms that have gone "all-ETF."

The move is expected to accelerate the already rapid growth of active ETFs, as it provides a compelling solution for active managers to offer their strategies in the wrapper investors increasingly prefer. While dozens of firms are waiting in the wings with their own SEC applications, the success and adoption rate of F/m's pioneering fund will likely determine how quickly this new standard is embraced.

A Legacy of Innovation

The historic launch is a fitting development for both F/m Investments and The RBB Fund Complex, two firms that have built reputations on pushing the boundaries of financial product design.

RBB, founded in 1988, is the industry's oldest independent multiple series trust, a structure that itself was an innovation allowing advisers to outsource the complexities of fund governance and administration. RBB has consistently served as an incubator for change, having overseen some of the industry's first mutual fund-to-ETF conversions, including the nearly $1 billion conversion for Motley Fool Asset Management, and pioneering the first ETF creation using a Section 351 transaction for tax-free SMA conversions. Their work on this multi-share class offering continues that legacy.

"At RBB, we firmly believe in the power of collaboration with our fund managers to foster industry-wide change, and this development is a perfect example of that partnership in action," Reichman stated.

F/m Investments, though a younger firm founded in 2018, has quickly become a recognized leader in ETF innovation, particularly in the fixed income space. The firm has also been at the forefront of exploring the intersection of traditional finance and digital assets, having previously filed a first-of-its-kind application to create tokenized shares of the very same TBIL ETF.

“This multi-share class listing would not have been possible without the collective vision and guidance of the RBB team,” said Alexander Morris, CEO of F/m Investments. “Their continued commitment has been crucial in empowering us to develop solutions that serve the evolving needs of investors. We look forward to continuing to work together to lead the industry forward.”