--- title: "Touchstone's ETF filing would move some Dynamic Large Cap Growth IRAs into a bond fund" url: "https://etf.net/news/touchstone-plans-some-iras-into-bonds-2026-11-10" published_at: "2026-11-10T13:05:30.953Z" updated_at: "2026-11-10T13:05:30.953Z" byline: "ETF.net Research" --- # Touchstone's ETF filing would move some Dynamic Large Cap Growth IRAs into a bond fund Only IRAs and Coverdell education accounts held at Touchstone, rather than at a brokerage, would be exchanged just before a closing expected on or about Jan. 22, 2027. By ETF.net Research. Published Nov 10, 2026. Some retirement accounts in the Touchstone Dynamic Large Cap Growth Fund would be exchanged for a bond fund rather than for shares of an exchange-traded fund, or ETF. A [Nov. 9 filing](https://www.sec.gov/Archives/edgar/data/1919700/000110465926124284/tm2629224d1_n14.htm) from Touchstone ETF Trust says the exchange applies to an individual retirement account or a Coverdell education savings account held directly with Touchstone, if the holder does not move it to a brokerage. Direct means the fund's transfer agent holds the shares, not a brokerage. If your quarterly statements come from Touchstone, you hold it that way. If the fund appears on a brokerage statement, this exchange does not apply. The shares would be exchanged, just before closing, for an equivalent share class of the Touchstone Ultra Short Duration Fixed Income Fund, the corresponding class of that fund. The closing is expected on or about **Jan. 22, 2027**. The filing says the exchange is not a tax-reportable event, and that completing it is a condition of the conversion. The filing does not set a date by which the account must move. It tells these holders to start a transfer immediately. The last day to redeem or exchange the mutual fund shares is the **Jan. 14, 2027** trade date. Other holders may still buy shares through Dec. 31, 2026. New purchases by direct holders closed on Oct. 31, 2026. The bond fund seeks maximum total return consistent with preserving capital, mainly by owning fixed-income securities, and it owns only investment-grade debt, [Touchstone's fund page](https://www.touchstoneinvestments.com/mutual-funds/ultra-short-duration-fixed-income-fund) says. Under normal conditions it keeps effective duration, a measure of how sensitive the bonds are to interest rates, at one year or less. Where a firm cannot hold the ETF, including many workplace retirement plans, the filing says the firm may move the investment to a different option before the closing. ## What happens to the shares These steps are for shares that stay in the fund. Accounts exchanged into the bond fund leave before the closing. Each date is "on or about." On Jan. 8, 2027, the five share classes become one. Class A (TGVFX), Class C (TGVCX), Class Y (TGVYX), Institutional (TGVVX) and Class R6 (TGVLX), as listed on [Touchstone's fund page](https://www.touchstoneinvestments.com/mutual-funds/dynamic-large-cap-growth-fund), are consolidated into Institutional Class shares, with no sales charge. The fund then splits those shares so each one is worth about $25. The number of shares changes. The total value of a holder's investment does not, and the filing says the split is not taxable. The filing says the split is meant to set a share price around that level so the ETF can trade more readily once it lists. The draft illustrates about 2.05 new shares for each old one, using the fund's books as of March 31, 2026. That figure is still in square brackets, the mark a draft uses for text that is not final, and the split date is blank. The actual ratio would be set from that day's net asset value, the value of one share of the fund's holdings. On Jan. 21, 2027, any fraction of a share is redeemed for cash. The filing says that cash will likely be taxable. On Jan. 22, the remaining shares are exchanged for shares of the Touchstone Dynamic Large Cap Growth ETF of equal total value. That exchange of whole shares is intended to be tax-free. An opinion from K&L Gates to that effect is a condition of closing, and the filing says the opinion would not bind the Internal Revenue Service. The ETF is expected to open for trading on or about Jan. 25, 2027, on the Cboe BZX Exchange, a U.S. stock exchange. Touchstone Advisors, the fund's adviser, pays the costs of the conversion whether or not it closes. The filing says the fund is not expected to sell securities to carry it out. ## If the shares stay with the transfer agent A direct holder who is not exchanged into the bond fund, and who does not name a brokerage account, would still receive ETF shares. Those shares would sit at Equiniti Trust Company, a transfer agent, until a brokerage account is identified. If the shares have not been moved a year after the conversion, the filing says they may be sold for cash. That sale would be taxable. Fees may apply, and the shares are subject to state and federal unclaimed-property law. Dividends that are reinvested now will not be reinvested in the ETF unless the brokerage supports it. The mutual fund pays any income dividends quarterly. The ETF expects to pay them annually. After the conversion, the shares cannot be exchanged into another Touchstone mutual fund, and a holder cannot redeem them from the fund at net asset value. Buying and selling would be on the exchange, at market prices that can sit above or below net asset value, and a brokerage commission may apply. ## What the fee table shows The management fee stays at 0.60%. The filing's table shows annual operating expenses of 0.84% before a waiver and **0.55%** after it. The 0.55% figure is a contractual cap, and the board of Touchstone ETF Trust can end it. If the cap ends, the expenses in that table, before the waiver, are 0.84%. The cap does not cover interest, taxes, brokerage commissions or extraordinary expenses, among other items. The draft has not settled how long the cap lasts. In the fee footnote the date, still in square brackets, is Jan. 29, 2028. Elsewhere in the draft a different bracketed date appears, Dec. 29, 2027. The mutual fund's existing caps run through July 29, 2027, and that date is not in brackets. Table: Share class, Net expenses in the filing, Gap to 0.55% Class A and Class C would see the large cuts. Institutional shares would save 0.07 percentage points, and Class R6 would save 0.02 percentage points. Class A and Class C also pay annual distribution fees, 0.25% and 1.00%, that the ETF table sets at zero. ## What would not change For holders who receive the ETF, the goal stays long-term growth of capital, and the main strategy stays the same. Under normal conditions the fund invests at least 80% of its assets in common stocks of large U.S. growth companies. That policy can be changed on 60 days' written notice. Touchstone Advisors stays the adviser, and Los Angeles Capital Management stays the sub-adviser. The portfolio managers remain Hal W. Reynolds, Ed Rackham and Daniel Arche, who have run the mutual fund since May 2025. Shareholders will not vote. The board of Touchstone Strategic Trust, the mutual fund's trust, approved the conversion on Aug. 20, 2026. The filing says the board concluded it was in the fund's best interests and would not dilute existing shareholders. This filing does not name a ticker. A [September filing](https://www.sec.gov/Archives/edgar/data/1919700/000119312526398668/d133592d485apos.htm), also a draft, named TDLG. The Touchstone Large Company Growth ETF TLG began operations on March 13, 2026, when another series of Touchstone Strategic Trust was reorganized into it, its [summary prospectus](https://www.sec.gov/Archives/edgar/data/1919700/000119312526194913/d97782d497k.htm) says. The Nov. 9 filing is a draft, marked subject to completion. Touchstone proposes that it become effective Dec. 9, 2026. The shares may not be sold until the filing is effective. Source: etf.net, https://etf.net/news/touchstone-plans-some-iras-into-bonds-2026-11-10. Please cite the page URL.