Put ETFs to work for your clients

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Put ETFs to work for your clients"

Transcription

1 Put ETFs to work for your clients

2 Contents 2 What are ETFs? 4 Potential benefits of ETFs 5 Comparing ETFs and mutual funds 6 How ETFs work 11 ETFs and indexing

3 Exchange-traded funds (ETFs) are attracting ever-greater attention from investors. They continue to grow globally, with assets of more than $2.5 trillion. That trend translates to Canada, where they are becoming a low-cost investment vehicle of choice. Canadian-listed ETF assets have more than tripled since But just how do you explain an ETF to your clients? This guide will help you understand how ETFs work and the potential ways you can use them in your clients portfolios. 1 Source: Global Simfund, Morningstar, Bloomberg and Vanguard as of December 31,

4 What are ETFs? ETFs are mutual funds that are listed, bought and sold on a regulated stock exchange, typically through a stockbroker or brokerage platform. ETFs offer the opportunity to invest in a portfolio of securities that provide the same diversification benefits of mutual funds with the added benefits of liquidity and trading flexibility of individual stocks. And ETFs, on average, cost less than mutual funds. Tracking an index ETFs that use an indexing approach are built so their value can be expected to move in line with the index they seek to track. For example, a 2% rise or fall in the index should result in approximately a 2% rise or fall for an ETF that tracks that index. 2 While most mutual funds in Canada are actively managed funds, which try to outperform the market, ETFs in Canada are primarily passively managed index investments. They seek to track the performance of a broad market or a specific portion of it. Most index-based ETFs invest in all or a representative sample of the securities of the indexes they seek to track. Index fund Diversified Low cost Low turnover ETF Individual stock Continuously priced Liquid 2 An ETF with a low tracking error will not generally outperform the applicable index, but rather will produce a return similar to the index minus fees and expenses. 2

5 How ETFs are traded Investors and their financial advisors must trade ETFs through a brokerage firm. Units can be bought and sold at the current market price whenever the stock exchange is open. Unit prices typically reflect the approximate value of the ETF s underlying shares at any given point in the day. Mutual funds, conversely, can be bought and sold directly through the fund company. Regardless of when you place an order, the purchase or sale takes place only once, at the end of the day, at the same price for all investors (See Figure 1). Figure 1 ETF buyer Investment advisor Marketplace Investment advisor ETF seller 3

6 Potential benefits of ETFs ETFs offer several potential benefits. Taken as a whole, these benefits tell a compelling story about why ETFs may belong in a portfolio. Any one of them may resonate with a given client. Low costs Annual management expense ratios of index-based ETFs can be less than those of many conventional index funds, and significantly less than those of actively managed funds. However, you need to consider the all-in cost of investing in ETFs to determine whether they are right for your clients. This is because ETFs have costs associated with trading in the stock market, such as brokerage commissions and bid-offer spreads. Diversification Index funds and index ETFs invest in all or a representative sample of the securities in an index and provide a diversified investment. This offers access to a wider range of investments than an individual investor may otherwise have. Keep in mind that diversification does not ensure a profit or protect against a loss in a declining market, and that it is not possible to invest directly in an index. While Vanguard ETFs are designed to be as diversified as the original indexes they seek to track and can provide greater diversification than an individual investor may achieve independently, any given ETF may not be a diversified investment. Of course, like stocks, ETFs are subject to the traditional risks and potential rewards of the markets. The value of ETF units will rise and fall as markets fluctuate, so an ETF can gain or lose value over short or long periods. Liquidity The ability of dealers to create and redeem ETF securities on a regular basis ensures an underlying depth of liquidity. Unlike mutual funds, ETFs can be traded at market prices throughout the trading day at a price quoted on a regulated stock exchange. Transparency With straightforward physical ETFs, the issuer provides daily information to the market, including the ETF basket, or a close representation of the ETF portfolio, making ETFs a transparent investment option. The difference between physical and more specialist synthetic ETFs is covered on pages 6 and 7. Potential for tax efficiency Taxes have the potential to take a bite out of investment returns, so tax-efficient funds may have a place in your clients portfolios. The low turnover of an indexing approach can minimize capital gains distributions, which can, in turn, improve long-term after-tax performance and tax efficiency. 3 Trading flexibility ETFs are traded on a stock exchange, so they can be bought and sold through an advisor or a brokerage account any time the exchange is open. Investors can use stock-trading techniques such as stop and limit orders and short-selling. And ETFs can be bought on margin. 3 Although index funds typically do make fewer trades, changes to the underlying index will require the index fund to buy or sell shares in accordance with changes to the index it seeks to track. 4

7 Comparing ETFs and mutual funds Investment fund managers either seek to track an index or to outperform an index using an active management strategy. The detailed comparison of investment-type characteristics below can help put ETFs in context. ETFs Index mutual funds Actively managed mutual funds Access Units bought and sold through a stockbroker or platform offering brokerage services Units bought and sold directly through the fund company or through an advisor Units bought and sold directly through the fund company or through an advisor Pricing Unit prices set by the market throughout the trading day Net asset values determined once per trading day, after financial markets close Net asset values determined once per trading day, after financial markets close Management expense ratios % 1.49% 2.30% Transaction costs Brokerage commissions and bid-ask spreads on each direct purchase and sale None for funds that don t have a sales charge when purchased or redeemed directly with the fund. (Some funds do have sales charges) None for funds that don t have a sales charge when purchased or redeemed directly with the fund. (Some funds do have sales charges) Dividend reinvestment Availability depends on the fund sponsor or your broker, who may charge for the service Generally available at no charge Generally available at no charge Client services Provided by the broker Provided by the fund sponsor or a broker Provided by the fund sponsor or a broker 4 Source: Vanguard calculations using management expense ratios compiled from annual and semiannual MRFPs and/or financial statements by Morningstar, Inc. Data as of December 31, Cost comparisons are for illustrative purposes only and are not meant to be all-inclusive. MER is expressed as an annual percentage of fund assets. It is composed of the base management fee plus certain operating expenses, such as administrative costs, plus applicable taxes. Different components contribute to the respective MER calculations for actively managed funds and index funds. Transaction costs associated with the issue, exchange, sale, and redemption of funds are not included. Trading, portfolio rebalancing and optional costs, and income taxes payable by any unit-holder, are also not included. There may be significant differences between the investments that are not discussed here. 5

8 How ETFs work Your clients may have several questions about ETFs, such as how they re traded and the costs involved, and even how an ETF comes into being. This section covers these topics and more. Creation and redemption ETFs generally don t experience cash flows into or out of the fund. That s because only certain institutional investors (brokerage houses, for example) are authorized to purchase or redeem units directly, and they do so almost exclusively using securities. When these institutional investors purchase units of an ETF, they give the ETF a specific quantity of securities. The securities in this basket are part of the index the ETF seeks to track. Similarly, when these institutions redeem their ETF units, the ETF generally provides them with securities, not cash (See Figure 2). During these in-kind transactions, the ETF incurs minimal transaction costs and does not realize capital gains. Some baskets, however, don t physically contain the securities that an index seeks to track. Innovation in the industry has led to the introduction of swapbased ETFs, where the basket may be unrelated to the index, and one or more counterparties agree to pay the index return to the ETF. Also known as synthetic ETFs, swap-based ETFs may make sense in certain instances, such as in gaining exposure to markets that are difficult to access. But it s essential to understand how the ETF is structured and its practices around collateral, transparency and liquidity. Figure 2 Basket of securities Hold units ETF sponsor One creation unit (e.g. 50,000 units of ETF) Dealer (Certain institutional investors, such as brokerage houses) Trade on Toronto Stock Exchange Individual investors ETF redemption works in reverse, with the dealer providing ETF units to the ETF sponsor in return for underlying securities. 6

9 Secondary-market trading Perhaps the most noticeable way ETFs differ from mutual funds is how they are bought and sold. Institutional investors can sell their ETF units to individual investors on the secondary market. These individual investors may then sell their ETFs to other investors for cash. Individual investors and their financial advisors must trade ETFs through a brokerage firm. ETFs can be bought and sold at the current market price whenever the stock exchange is open. Unit prices typically reflect the approximate value of the ETF s underlying securities at any given point in the day. These market trades, however, have no effect on the ETF itself; no cash flows into or out of the ETF that would require it to purchase or sell portfolio securities, pay brokerage commissions, or realize capital gains. As a result, the ETF is largely able to hold down its operating costs and limit the distribution of capital gains to unitholders (See Figure 3). Of course, individual investors are subject to any brokerage commissions and capital gains triggered by trades on their behalf. Keep in mind that the market price of ETFs may be more or less than the net asset value. Figure 3 Investor A Works with advisor to create an investment mix that s right for him or her. Works with advisor to create an investment mix that s right for him or her. Investor B Advisor A Broker A Stock exchange Broker B Advisor B Places buy order for ETF units on behalf of Investor A. Initiates transaction with stock exchange. Completes transaction with brokers. Unit ownership changes from Investor B to Investor A. Initiates transaction with stock exchange. Places sell order for ETF units on behalf of Investor B. 7

10 Trading options Because ETFs trade like stocks any time during regular exchange hours, you can execute specific strategies to help your clients achieve their investment objectives. Here are some ways that ETFs can offer greater flexibility than mutual funds: A market order is an order to buy or sell a security immediately, at the market price. Execution, not price, is the priority, so with a market order, the price you receive can be unpredictable. You may want to consider using stop and limit orders to help protect your clients from trading a security at a lower or higher price than they want to. A stop order is an order that triggers a market order to buy or sell a stock once it reaches a certain unit price, known as the stop price. Be aware that stop orders may be triggered by temporary market movements or may be executed at prices higher or lower than the stop price because of market orders placed ahead of them. A limit order is an order to buy or sell a security at a specified price or better. Limit orders may not be executed immediately. They may be executed only partially, or not at all, depending on the availability of buyers or sellers at the price you have specified. Buying on margin allows your client to borrow a percentage of an ETF s value from the broker in order to purchase the ETF. Be aware that if the value of the ETF drops substantially, your client may have to deposit more cash in the account or sell some of the ETF. Short-selling is an investment technique that involves essentially borrowing a security and then selling it with the intent to buy it back at a lower price. Short-sellers hope to make money when the market goes down. If a security you have sold short for a client rises in value, however, your client can lose money and there s no limit to how much he or she can lose. In some cases, you can short-sell ETF units to hedge the risk of your client s other investments. You can also shift assets out of and back into an ETF on a short-term basis to realize any capital losses and better manage your client s tax liability. Excess return and tracking error Excess return and tracking error can help you evaluate ETFs. But to use the measures effectively, you need to understand what they represent and how much weight to give them in your evaluations. Excess return shows how a product s perfor mance compares with that of its benchmark over a given period. Tracking error indicates the consistency of a product s excess return in the same period. 8

11 When selecting products for your clients portfolios, it s important to keep excess return and tracking error in context. If total return is your primary criterion, then excess return will likely be more important than tracking error in your evaluations. If performance consistency is more important to you, then tracking error may be more relevant. Liquidity and average daily volume Investors who place large orders may pause when they see an ETF with average daily volume that they perceive as small. They may wonder whether liquidity is sufficient to receive the best price at the trade size. More important than the liquidity of an ETF, however, is the liquidity of its underlying securities. Why? It s a function of the creation and redemption process. When demand exists for ETF units, for example, a dealer can provide the ETF sponsor with a basket of underlying securities to create the units. The liquidity of the underlying securities is paramount. ETFs trade on an exchange like stocks. Whereas a large trade in a single stock can affect the trading price, a large trade in an ETF can be achieved, when necessary, through the creation or redemption of ETF units. The creation and redemption mechanism relieves the pricing pressure of large trades. So average daily volume for an ETF is often meaningless. More important to how any ETF may trade is the average daily volume of its underlying securities. Costs As with any investment, operating costs vary among ETFs. Generally, ETFs cost less to operate than both index and actively managed mutual funds. Because ETF investors place transactions through brokerage firms, the ETFs do not incur the administrative costs that mutual funds incur for such things as correspondence, customer service and account recordkeeping. That can allow ETFs to keep management expense ratios low, which leaves more money to work for investors over the long term. Keep in mind, however, that ETFs do incur transaction costs. Your clients likely will pay brokerage commissions whenever you buy or sell ETF units for their portfolios. ETF market prices also reflect bid-ask spreads. This is the difference between what an investor sells a security for and the somewhat higher price at which the investor buys the same security. Like other investment costs, these expenses are borne by the individual investor and can affect investment returns. 9

12 A few cautionary words When market volatility climbs, trading securities can become challenging. To help your clients obtain best execution when buying or selling ETFs, you may want to consider the following: Be aware at the open and close. At the open, not all underlying securities in an ETF may have begun trading. In such situations, the market maker can t price the ETF with certainty, potentially causing wider bid-ask spreads. At the close, fewer firms may be making markets in the ETF and fewer securities may be listed for purchase and sale than throughout the trading day. Consider using a block desk. When you place large orders, a block desk can break your trade into smaller increments over time to manage the effects of a large trade. Or it can create or redeem units directly with the ETF sponsor so as not to affect prices on the secondary market. Your block desk can also review pricing depth before placing a trade. Remember the basics. Pay attention to earnings announcements and other news from companies that are large constituents of an ETF s benchmark and to news such as the release of economic indicators. ETFs can trade at larger premiums or discounts during market swings, which can be prompted by such news. 10

13 ETFs and indexing Most ETFs in Canada, including those managed by Vanguard Investments Canada Inc., are indexed investments. Most Canadian mutual funds, meanwhile, are actively managed. Managers of indexed investments seek to track not outperform a market index. Managers of active funds, on the other hand, seek to outperform the market. Why would your clients be satisfied with earning what the market earns, minus costs? Because while outperformance is possible over short periods, Vanguard research shows that long-term outperformance is rare. 5 Investing is a zero-sum game. All investors holdings represent the market. When one investor outperforms, another must under perform. Factor in the costs of running a fund and your odds of outperforming grow longer. The costs of indexed investments generally are lower than those of actively managed investments. In Canada, they re much lower. Vanguard ETFs enjoy the low portfolio turnover that typically comes with indexing. Because indexed investments seek to track a market index, they don t need to constantly buy and sell securities, so they can limit the distribution of capital gains to investors. Vanguard and indexing When you invest with Vanguard, you have more than 35 years of index investing experience behind you. The Vanguard Group, Inc. launched the first equity index mutual fund for individual investors in 1976 in the United States. Funds based on bond and international indices followed in 1986 and We ve since applied our index management expertise to exchange-traded funds. As we ve developed proprietary software and sophisticated techniques for portfolio construction, risk management and trading, we ve also grown in size, scale and experience. Investors benefit through tight, low-cost benchmark tracking. Of course, an index investment is only as good as the benchmark it seeks to track. We select only market-capitalization benchmarks, which objectively reflect broad markets or market segments and thus minimize investment costs. Many index providers use benchmark construction best practices that Vanguard has promoted for years an industry endorsement of our leadership. You can feel confident that your clients returns will be close to the market s returns, minus expenses, and that your clients will know where their money is invested. 5 The case for index-fund investing for Canadian investors, Christopher B. Philips et al., The Vanguard Group, May

14 Alternative indexing? Some investment managers employ alternatives to market-capitalization weighting. Managers screen securities based on certain financial measures in an attempt for greater performance. These managers typically identify measures that tilt toward investments in value stocks and small- and mid-cap stocks. In bonds, a popular alternative strategy has been to weight sovereign issues using a debt-to-gdp ratio, which in current market conditions results in an emerging markets bias. These alternative index strategies can carry higher management expenses than market-cap-weighted indexing investments (See Figure 4). If you re truly looking to capture the market s returns, you may want to consider low-cost index funds that encompass the entire market. Figure 4 Actively managed Index Difference Canadian equity funds average MER Canadian equity ETFs average MER Vanguard Canadian equity ETFs average management fee Canadian fixed income funds average MER Canadian fixed income ETFs average MER Vanguard Canadian fixed income ETFs average management fee 2.63% 1.30% 1.33% % 0.36% Not applicable 0.24% 1.54% 1.15% 0.39% 0.73% 0.39% 0.34% Not applicable 0.9% With respect to the average industry management expense ratios (MERs), this table reflects MERs compiled from annual and semiannual Management Reports of Fund Performance and/or financial statements, excluding the Vanguard ETFs. MERs vary from mutual fund/etf to mutual fund/etf and do not include brokerage commissions or other trading expenses. For the Vanguard ETFs, the table reflects management fees payable by the Vanguard ETFs to Vanguard Investments Canada Inc. as reported in their prospectus. Data as of December 31, Cost comparisons are for illustrative purposes only and are not meant to be all-inclusive. 12

15 As you consider ETFs for your clients portfolios, you can count on Vanguard s indexing expertise and our record of putting investors first.

16 Vanguard Investments Canada Inc. 155 Wellington Street West Suite 3720 Toronto, ON M5V 3H1 Connect with Vanguard vanguardcanada.ca Commissions, management fees and expenses all may be associated with the Vanguard ETFs. This offering is only made by prospectus. The prospectus contains important detailed information about the securities being offered. Copies of the prospectus are available at Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. The first date of publication by Vanguard Investments Canada Inc. is June References in this presentation to Vanguard refer to The Vanguard Group, Inc. or to The Vanguard Group, Inc. and its subsidiaries including Vanguard Investments Canada Inc. and are used for convenience only. Vanguard ETFs are managed by Vanguard Investments Canada Inc., an indirect wholly-owned subsidiary of The Vanguard Group, Inc. Vanguard ETFs are available across Canada. Vanguard ETFs will be issued, exchanged and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of units or baskets of securities. ( Prescribed Unit ). All transactions of less than Prescribed Unit aggregations are traded on TSX with the assistance of a registered investment dealer. The number of Prescribed Units is determined by Vanguard Investments Canada Inc, from time to time for the purpose of subscription orders, exchanges, and redemptions or for other purposes. This communication is solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, including any security of any exchange-traded fund. The information is neither investment and/or tax advice, nor is it tailored to the needs or circumstances of any individual investor. All investments, including those that seek to track indexes, are subject to risk, including the possible loss of principal. Exchangetraded funds are subject to risks similar to those of stocks. Investing in ETFs involves risk, including the risk of error in tracking the underlying index. The performance of an index is not an exact representation of any particular investment as you cannot invest directly in an index. Diversification does not ensure a profit or protect against a loss in a declining market. Investments that concentrate on a relatively narrow market sector face the risk of higher unit-price volatility. Prices of small- and midcap stocks often fluctuate more than those of large-company stocks. Investments in exchange-traded bond funds are subject to interest rate, credit, and inflation risk. Because high-yield bonds are considered speculative, investors should be prepared to assume a substantially greater level of credit risk than with other types of bonds. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Investments in emerging markets are generally more risky than investments in developed countries. All figures are provided on a delayed and unaudited basis as of the date indicated in this material, may change at any time and are not intended to be relied upon in determining which ETFs to buy or sell or when to buy or sell ETFs. Vanguard Investments Canada Inc. does not guarantee the accuracy, completeness, timeliness or reliability of the information, figures, illustrations, graphs and charts or any results from their use Vanguard Investments Canada Inc. All rights reserved. EBBCA

Use this brochure to gain expertise about ETFs that you can communicate to your clients.

Use this brochure to gain expertise about ETFs that you can communicate to your clients. How ETFs work Your clients may have questions about exchange-traded funds (ETFs), such as how they differ from mutual funds, how they re traded and even how they re created. Use this brochure to gain expertise

More information

Client Education. Learn About Exchange-Traded Funds

Client Education. Learn About Exchange-Traded Funds Client Education Learn About Exchange-Traded Funds 2 What is an ETF? 6 How do ETFs work? 12 How do ETFs compare with other investments? 2 Exchange-traded funds, or ETFs, are attracting more and more attention

More information

Learn about exchange-traded funds. Investor education

Learn about exchange-traded funds. Investor education Learn about exchange-traded funds Investor education Become a more knowledgeable exchange-traded funds investor In this education guide, you ll get answers to common questions about exchange-traded funds,

More information

Understanding ETF liquidity and trading

Understanding ETF liquidity and trading Understanding ETF liquidity and trading ETF liquidity and trading can seem complex. For example, you may have heard that ETFs with lower average daily trading volumes (ADVs) aren t as liquid as others

More information

Nine Questions Every ETF Investor Should Ask Before Investing

Nine Questions Every ETF Investor Should Ask Before Investing Nine Questions Every ETF Investor Should Ask Before Investing UnderstandETFs.org Copyright 2012 by the Investment Company Institute. All rights reserved. ICI permits use of this publication in any way,

More information

Exchange Traded Funds

Exchange Traded Funds LPL FINANCIAL RESEARCH Exchange Traded Funds February 16, 2012 What They Are, What Sets Them Apart, and What to Consider When Choosing Them Overview 1. What is an ETF? 2. What Sets Them Apart? 3. How Are

More information

9 Questions Every ETF Investor Should Ask Before Investing

9 Questions Every ETF Investor Should Ask Before Investing 9 Questions Every ETF Investor Should Ask Before Investing 1. What is an ETF? 2. What kinds of ETFs are available? 3. How do ETFs differ from other investment products like mutual funds, closed-end funds,

More information

9 Questions Every ETF Investor Should Ask Before Investing

9 Questions Every ETF Investor Should Ask Before Investing 9 Questions Every ETF Investor Should Ask Before Investing 1. What is an ETF? 2. What kinds of ETFs are available? 3. How do ETFs differ from other investment products like mutual funds, closed-end funds,

More information

9 Questions Every Australian Investor Should Ask Before Investing in an Exchange Traded Fund (ETF)

9 Questions Every Australian Investor Should Ask Before Investing in an Exchange Traded Fund (ETF) SPDR ETFs 9 Questions Every Australian Investor Should Ask Before Investing in an Exchange Traded Fund (ETF) 1. What is an ETF? 2. What kinds of ETFs are available? 3. How do ETFs differ from other investment

More information

Exchange-Traded Funds

Exchange-Traded Funds Exchange-Traded Funds Exchange Traded Funds (ETF s) are becoming popular investment vehicles for many investors. Most ETF s are cost effective, broad market funds. We have put together a layman s explanation

More information

Understanding ETF liquidity and trading

Understanding ETF liquidity and trading Understanding ETF liquidity and trading ETF liquidity and trading can seem complex. For example, you may have heard that ETFs with lower average daily trading volumes (ADVs) aren t as liquid as others

More information

Benefit from the Vanguard difference

Benefit from the Vanguard difference Benefit from the Vanguard difference Contents 2 About Vanguard 3 An enduring investment philosophy 4 A different way to invest 6 An indexing leader 7 A trusted partner for advisors in Canada 8 Contact

More information

ETFs as Investment Options in 401(k) Plans

ETFs as Investment Options in 401(k) Plans T. ROWE PRICE ETFs as Investment Options in 401(k) Plans Considerations for Plan Sponsors By Toby Thompson, CFA, CAIA, T. Rowe Price Defined Contribution Investment Specialist Retirement Insights EXECUTIVE

More information

Market Linked Certificates of Deposit

Market Linked Certificates of Deposit Market Linked Certificates of Deposit This material was prepared by Wells Fargo Securities, LLC, a registered brokerdealer and separate non-bank affiliate of Wells Fargo & Company. This material is not

More information

Diversify portfolios with U.S. and international bonds

Diversify portfolios with U.S. and international bonds Diversify portfolios with U.S. and international bonds Investing broadly across asset classes such as stocks, bonds and cash can help reduce volatility and risk within a portfolio. Canadian investors have

More information

STRATEGIES FOR USING ETFS. Tax Loss Harvesting Investors can sell individual stock positions currently

STRATEGIES FOR USING ETFS. Tax Loss Harvesting Investors can sell individual stock positions currently STRATEGIES FOR USING ETFS Tax Loss Harvesting Investors can sell individual stock positions currently trading below purchase price, realize the loss and maintain similar exposure by purchasing the appropriate

More information

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) Exchange Traded Funds (ETFs) Advisers guide to ETFs and their potential role in client portfolios This document is directed at professional investors and should not be distributed to, or relied upon by

More information

Exchange Traded Funds A Brief Introduction

Exchange Traded Funds A Brief Introduction Exchange Traded Funds A Brief Introduction spdrs.com What You Need to Know about ETFs ETF Basics Potential Benefits of ETFs ETFs versus Mutual Funds The Role of ETFs in Your Portfolio Our Next Steps Frequently

More information

Exchange-Traded Funds

Exchange-Traded Funds Exchange-Traded Funds By Ken Hawkins Investopedia Introduction Exchange-traded funds (ETFs) can be a valuable component for any investor's portfolio, from the most sophisticated institutional money managers

More information

Contents. 1 Asset allocation 2 Sub-asset allocation 3 Active/passive combinations 4 Asset location

Contents. 1 Asset allocation 2 Sub-asset allocation 3 Active/passive combinations 4 Asset location ETF Strategies Contents Why ETFs? Strategic uses for ETFs 1 Asset allocation 2 Sub-asset allocation 3 Active/passive combinations 4 Asset location Tactical uses for ETFs 1 Portfolio completion 2 Cash

More information

ishares Product Overview Q2 2015

ishares Product Overview Q2 2015 ishares Product Overview Q2 2015 About BlackRock BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2015,

More information

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional

More information

Three new stock ETFs for greater global diversification

Three new stock ETFs for greater global diversification Three new stock ETFs for greater global diversification Canadian stocks account for less than 4% of publicly traded companies global market value. Investors in Canada, however, allocate 59% of their stock

More information

SPDR Wells Fargo Preferred Stock ETF

SPDR Wells Fargo Preferred Stock ETF SPDR Wells Fargo Preferred Stock ETF Summary Prospectus-October 31, 2015 PSK (NYSE Ticker) Before you invest in the SPDR Wells Fargo Preferred Stock ETF (the Fund ), you may want to review the Fund's prospectus

More information

ETFs for private investors

ETFs for private investors ETFs for private investors Simple products. Sophisticated strategies. ETFs Exchange Traded Funds (ETFs) are instruments which track an index. Indices can be country or region specific and based on emerging

More information

Exchange Traded Funds A Brief Introduction

Exchange Traded Funds A Brief Introduction Exchange Traded Funds A Brief Introduction 1 What You Need to Know about ETFs 2 ETF Basics Benefits of ETFs ETFs vs. Mutual Funds The Role of ETFs in Your Portfolio Our Next Steps Appendix: FAQs 3 ETF

More information

Best Online Trading Platform Saudi Arabia

Best Online Trading Platform Saudi Arabia Best Online Trading Platform Saudi Arabia 2009 2009 A NEW CHAPTER BEGINS The kingdom of Saudi Arabia is about to witness a major development in the capital market with the launch of a new asset class (Exchange

More information

The active/passive decision in global bond funds

The active/passive decision in global bond funds The active/passive decision in global bond funds Vanguard research November 213 Executive summary. This paper extends the evaluation of active versus passive management to global bond funds. Previous Vanguard

More information

UNDERSTANDING CLOSED-END FUNDS

UNDERSTANDING CLOSED-END FUNDS Lessons in Investing for Income UNDERSTANDING CLOSED-END FUNDS Income is one of investors most common goals but one not easily achieved, especially in today s low-yielding environment. That s why investors

More information

Exchange Traded Funds. Plain Talk Library

Exchange Traded Funds. Plain Talk Library Plain Talk Library Contents What is indexing? 2 ETFs 2 How do ETFs work? 3 ETFs - Fees and Costs 4 How can you invest in ETFs? 6 Participants in the ETF market 9 What are the benefits of ETFs? 10 Risk

More information

BASKET A collection of securities. The underlying securities within an ETF are often collectively referred to as a basket

BASKET A collection of securities. The underlying securities within an ETF are often collectively referred to as a basket Glossary: The ETF Portfolio Challenge Glossary is designed to help familiarize our participants with concepts and terminology closely associated with Exchange- Traded Products. For more educational offerings,

More information

Exchange-traded Funds

Exchange-traded Funds Mitch Kosev and Thomas Williams* The exchange-traded fund (ETF) industry has grown strongly in a relatively short period of time, with the industry attracting greater attention as it grows in size. The

More information

PRODUCT KEY FACTS Samsung KOSPI 200 Daily (2x) Leveraged Product

PRODUCT KEY FACTS Samsung KOSPI 200 Daily (2x) Leveraged Product Issuer: Samsung Asset Management (Hong Kong) Limited 三 星 資 產 運 用 ( 香 港 ) 有 限 公 司 PRODUCT KEY FACTS Samsung KOSPI 200 Daily (2x) Leveraged Product 24 June 2016 This is a leveraged product. It is different

More information

Exchange-traded funds (ETFs) effectively blend the investment characteristics of mutual funds with the trading flexibility of individual securities.

Exchange-traded funds (ETFs) effectively blend the investment characteristics of mutual funds with the trading flexibility of individual securities. The Best buck practices stops here: for ETF trading: Vanguard Seven rules money of the market road funds Vanguard research June 2014 Joel M. Dickson, Ph.D.; James J. Rowley Jr., CFA Exchange-traded funds

More information

ETFs 101 An Introduction to Exchange-Traded Funds

ETFs 101 An Introduction to Exchange-Traded Funds An Introduction to Exchange-Traded Funds Leading the Intelligent ETF Revolution Please refer to Slides 2 and 3 for Important Information. Shares are not individually redeemable for redemption to the Fund

More information

Index investing. A simple, low-cost solution for retirement plans

Index investing. A simple, low-cost solution for retirement plans Index investing A simple, low-cost solution for retirement plans Index investing: A simple, low-cost solution for retirement plans Despite the challenging economic conditions of the last few years, employers

More information

SPDR S&P Software & Services ETF

SPDR S&P Software & Services ETF SPDR S&P Software & Services ETF Summary Prospectus-October 31, 2015 XSW (NYSE Ticker) Before you invest in the SPDR S&P Software & Services ETF (the Fund ), you may want to review the Fund's prospectus

More information

The Choice Between ETFs and Conventional Index Fund Shares

The Choice Between ETFs and Conventional Index Fund Shares The Choice Between ETFs and Conventional Index Fund Shares Vanguard Investment Counseling & Research Executive summary. Exchange-traded fund (ETF) shares provide an alternative structure for investing

More information

Exchange Traded Funds. An Introductory Guide. For professional clients only

Exchange Traded Funds. An Introductory Guide. For professional clients only Exchange Traded Funds An Introductory Guide For professional clients only Exchange-Traded Funds (ETFs) started to be used in Europe in the early 2000s but over the past few years they have grown their

More information

A GUIDE TO MUTUAL FUND INVESTING

A GUIDE TO MUTUAL FUND INVESTING Many investors turn to mutual funds to meet their long-term financial goals. They offer the benefits of diversification and professional management and are seen as an easy and efficient way to invest.

More information

Contents. ETF Reference Guide Page 2 The Stock Exchange of Mauritius

Contents. ETF Reference Guide Page 2 The Stock Exchange of Mauritius ETF Reference Guide Contents 1. Background 04 2. Introduction to Exchange Traded Funds 05 What are Exchange Traded Funds Why invest in Exchange Traded Funds as an alternative to other similar investments?

More information

SPDR S&P 400 Mid Cap Value ETF

SPDR S&P 400 Mid Cap Value ETF SPDR S&P 400 Mid Cap Value ETF Summary Prospectus-October 31, 2015 Before you invest in the SPDR S&P 400 Mid Cap Value ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional

More information

January 2008. Bonds. An introduction to bond basics

January 2008. Bonds. An introduction to bond basics January 2008 Bonds An introduction to bond basics The information contained in this publication is for general information purposes only and is not intended by the Investment Industry Association of Canada

More information

Understanding ETF Liquidity

Understanding ETF Liquidity Understanding ETF Liquidity SM 2 Understanding the exchange-traded fund (ETF) life cycle Despite the tremendous growth of the ETF market over the last decade, many investors struggle to understand the

More information

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 The unit investment trusts named above (the Portfolios

More information

PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product

PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product Issuer: Samsung Asset Management (Hong Kong) Limited 三 星 資 產 運 用 ( 香 港 ) 有 限 公 司 PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product 24 June 2016 This is a leveraged product. It is different from

More information

HANG SENG FTSE / XINHUA CHINA 25 INDEX ETF

HANG SENG FTSE / XINHUA CHINA 25 INDEX ETF HANG SENG FTSE / XINHUA CHINA 25 INDEX ETF (SEHK STOCK CODE:2838) www.hangseng.com/etf IMPORTANT RISK WARNINGS / FUND INFORMATION FOR HONG KONG INVESTORS Hang Seng FTSE/Xinhua China 25 Index ETF (the HS

More information

SUMMARY PROSPECTUS. TCW High Yield Bond Fund FEBRUARY 29 I SHARE: TGHYX N SHARE: TGHNX

SUMMARY PROSPECTUS. TCW High Yield Bond Fund FEBRUARY 29 I SHARE: TGHYX N SHARE: TGHNX TCW High Yield Bond Fund I SHARE: TGHYX N SHARE: TGHNX 20 6 FEBRUARY 29 SUMMARY PROSPECTUS Before you invest, you may want to review the Fund s Prospectus which contain more information about the Fund

More information

Managed funds. Plain Talk Library

Managed funds. Plain Talk Library Plain Talk Library Contents Introduction to managed funds 5 What is a managed fund and how does it work? 6 Types of managed funds 12 What are the benefits of managed funds? 15 Choosing a managed fund

More information

Investing. Mutual Fund. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567

Investing. Mutual Fund. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 Mutual Fund Investing Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 Mutual funds are one of the most popular ways

More information

PureFunds ISE Cyber Security ETF (the Fund ) June 18, 2015. Supplement to the Summary Prospectus dated November 7, 2014

PureFunds ISE Cyber Security ETF (the Fund ) June 18, 2015. Supplement to the Summary Prospectus dated November 7, 2014 PureFunds ISE Cyber Security ETF (the Fund ) June 18, 2015 Supplement to the Summary Prospectus dated November 7, 2014 Effective immediately, Ernesto Tong, CFA, Managing Director of Penserra Capital Management,

More information

Fixed Income ETFs: Navigating Today s Trading Environment

Fixed Income ETFs: Navigating Today s Trading Environment Fixed Income ETFs: Navigating Today s Trading Environment Karen Schenone, CFA Vice President, ishares Fixed Income Strategy Khoabane Phoofolo Vice President, ishares Capital Markets Today s Speakers Karen

More information

Vanguard REIT ETF Prospectus

Vanguard REIT ETF Prospectus Vanguard REIT ETF Prospectus May 28, 2015 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard REIT Index Fund ETF Shares (VNQ) This prospectus contains

More information

Xetra. The market. Xetra: Europe s largest trading platform for ETFs. ETF. One transaction is all you need.

Xetra. The market. Xetra: Europe s largest trading platform for ETFs. ETF. One transaction is all you need. Xetra. The market. Xetra: Europe s largest trading platform for ETFs ETF. One transaction is all you need. Deutsche Börse Group is the leading global service provider to the securities industry. Its cutting-edge

More information

BMO Global Asset Management (Asia) Limited 11 February 2016

BMO Global Asset Management (Asia) Limited 11 February 2016 Product Key Facts BMO MSCI JAPAN HEDGED TO USD ETF BMO Global Asset Management (Asia) Limited 11 February 2016 Quick facts This is an exchange traded fund. This statement provides you with key information

More information

Investing in Mutual Funds

Investing in Mutual Funds Investing in Mutual Funds C H A P T E R 17 Barb Branson thought she knew a good thing when she saw it. After researching some mutual funds, she picked one that had a great five-year track record. With

More information

Chapter 2 Characteristics of Investment Companies

Chapter 2 Characteristics of Investment Companies Chapter 2 Characteristics of Investment Companies Abstract Chapter 2 provides a brief overview of five types of investment companies: open-end funds, closed-end funds, unit investment trusts, exchange-traded

More information

Best ETF Trading Practices

Best ETF Trading Practices Presented by QQQ TM Also inside: 2 Why best trading practices matter 3 The value of a pretrade analysis 4 Evaluating ETFs for trading efficiency 5 Mechanics of ETF trades 5 Relationships between ETF trading

More information

4/26/2012. Navigating the ETF Landscape. The ETF revolution. ETF assets expected to approach $2 trillion by 2014 $2,500 1,200 AUM ($B) # of ETFs

4/26/2012. Navigating the ETF Landscape. The ETF revolution. ETF assets expected to approach $2 trillion by 2014 $2,500 1,200 AUM ($B) # of ETFs Navigating the ETF Landscape FOR FINANCIAL PROFESSIONAL USE ONLY NOT FOR PUBLIC DISTRIBUTION The ETF revolution ETF assets expected to approach $2 trillion by 2014 $2,500 $2,000 AUM ($B) # of ETFs 1099

More information

PureFunds TM ISE Big Data ETF Trading Symbol: BDAT Listed on NYSE Arca. Summary Prospectus January 31, 2016. www.pureetfs.com

PureFunds TM ISE Big Data ETF Trading Symbol: BDAT Listed on NYSE Arca. Summary Prospectus January 31, 2016. www.pureetfs.com PureFunds TM ISE Big Data ETF Trading Symbol: BDAT Listed on NYSE Arca Summary Prospectus January 31, 2016 www.pureetfs.com Before you invest, you may want to review the PureFunds TM ISE Big Data ETF s

More information

HSBC Mutual Funds. Simplified Prospectus June 8, 2015

HSBC Mutual Funds. Simplified Prospectus June 8, 2015 HSBC Mutual Funds Simplified Prospectus June 8, 2015 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: HSBC Global Corporate

More information

VANGUARD TO CHANGE TARGET BENCHMARKS FOR 22 INDEX FUNDS

VANGUARD TO CHANGE TARGET BENCHMARKS FOR 22 INDEX FUNDS PRESS RELEASE For a full list of the impacted funds and more information, contact Vanguard Public Relations at 610-669- 5002. VANGUARD TO CHANGE TARGET BENCHMARKS FOR 22 INDEX FUNDS VALLEY FORGE, PA (October

More information

Prospectus Socially Responsible Funds

Prospectus Socially Responsible Funds Prospectus Socially Responsible Funds Calvert Social Investment Fund (CSIF) Balanced Portfolio Equity Portfolio Enhanced Equity Portfolio Bond Portfolio Money Market Portfolio Calvert Social Index Fund

More information

INITIAL PUBLIC OFFERINGS

INITIAL PUBLIC OFFERINGS EQUITIES Main Board GEM EQUITIES Equity securities, generally referred to as shares or stocks, represent ownership units in the issuing company. In Hong Kong, shares are listed either on the Main Board

More information

BMO Global Asset Management (Asia) Limited 11 February 2016

BMO Global Asset Management (Asia) Limited 11 February 2016 Product Key Facts BMO NASDAQ 100 ETF BMO Global Asset Management (Asia) Limited 11 February 2016 Quick facts This is an exchange traded fund. This statement provides you with key information about this

More information

Understanding Leveraged Exchange Traded Funds AN EXPLORATION OF THE RISKS & BENEFITS

Understanding Leveraged Exchange Traded Funds AN EXPLORATION OF THE RISKS & BENEFITS Understanding Leveraged Exchange Traded Funds AN EXPLORATION OF THE RISKS & BENEFITS Direxion Shares Leveraged Exchange-Traded Funds (ETFs) are daily funds that provide 200% or 300% leverage and the ability

More information

THE STOCK MARKET GAME GLOSSARY

THE STOCK MARKET GAME GLOSSARY THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The

More information

RISK DISCLOSURE STATEMENT

RISK DISCLOSURE STATEMENT RISK DISCLOSURE STATEMENT You should note that there are significant risks inherent in investing in certain financial instruments and in certain markets. Investment in derivatives, futures, options and

More information

Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale)

Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale) Summary Prospectus October 30, 2015 Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale) Before you invest, you may want to review the Fund s Prospectus, which

More information

Understanding mutual fund share classes, fees and certain risk considerations

Understanding mutual fund share classes, fees and certain risk considerations Disclosure Understanding mutual fund share classes, fees and certain risk considerations Highlights Mutual funds may offer different share classes most commonly in retail brokerage accounts, Class A, B

More information

GUARDIAN CAPITAL FUNDS

GUARDIAN CAPITAL FUNDS GUARDIAN CAPITAL FUNDS SIMPLIFIED PROSPECTUS DATED APRIL 20, 2015 Offering Series W and Series I units Guardian Balanced Fund Guardian Balanced Income Fund Guardian Canadian Bond Fund Guardian Canadian

More information

Wealth Management Education Series. Explore the Field of Mutual Funds

Wealth Management Education Series. Explore the Field of Mutual Funds Wealth Management Education Series Explore the Field of Mutual Funds Wealth Management Education Series Explore the Field of Mutual Funds Managing your wealth well is like tending a beautiful formal garden

More information

Vanguard FTSE Developed Markets ETF Prospectus

Vanguard FTSE Developed Markets ETF Prospectus Vanguard FTSE Developed Markets ETF Prospectus April 8, 2016 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard Developed Markets Index Fund ETF Shares

More information

Market Making for Exchange Traded Funds. Corporates & Markets

Market Making for Exchange Traded Funds. Corporates & Markets Market Making for Exchange Traded Funds Corporates & Markets Commerzbank your trusted partner in the ETF market Since the start of the new millennium, exchange traded funds (ETFs) have experienced phenomenal

More information

Vanguard S&P 500 ETF Prospectus

Vanguard S&P 500 ETF Prospectus Vanguard S&P 500 ETF Prospectus April 28, 2015 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard 500 Index Fund ETF Shares (VOO) This prospectus contains

More information

Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX

Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX Summary Prospectus October 30, 2015 Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX Before you invest, you may

More information

Glossary of Investment Terms

Glossary of Investment Terms online report consulting group Glossary of Investment Terms glossary of terms actively managed investment Relies on the expertise of a portfolio manager to choose the investment s holdings in an attempt

More information

HSBC Mutual Funds. Simplified Prospectus June 15, 2016

HSBC Mutual Funds. Simplified Prospectus June 15, 2016 HSBC Mutual Funds Simplified Prospectus June 15, 2016 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: Cash and Money Market

More information

What is the history and global performance of ETFS? What are ETFs? Assets Under Management (AUM) of ETFs: 2001 Q12013

What is the history and global performance of ETFS? What are ETFs? Assets Under Management (AUM) of ETFs: 2001 Q12013 What is the history and global performance of ETFS? Exchange Traded Funds debuted in 1993 when State Street launched the SPDR S&P 500, an equity index fund tracking the S&P 500. Shortly after, ETFs gained

More information

Underneath the Hood of Fixed Income ETFs: Primary and Secondary Market Dynamics

Underneath the Hood of Fixed Income ETFs: Primary and Secondary Market Dynamics Underneath the Hood of Fixed Income ETFs: Primary and Secondary Market Dynamics BY DAVID B. MAZZA, VICE PRESIDENT, HEAD OF RESEARCH, SPDR ETFs AND SSgA FUNDS STATE STREET GLOBAL ADVISORS WITH THE SPDR

More information

Bond Mutual Funds. a guide to. A bond mutual fund is an investment company. that pools money from shareholders and invests

Bond Mutual Funds. a guide to. A bond mutual fund is an investment company. that pools money from shareholders and invests a guide to Bond Mutual Funds A bond mutual fund is an investment company that pools money from shareholders and invests primarily in a diversified portfolio of bonds. Table of Contents What Is a Bond?...

More information

Explore the Field of Mutual Funds

Explore the Field of Mutual Funds Wealth Management Education Series How can we help you further? Do you have a question on what you have just read? Would you like to have a further discussion on this subject? Contact your Relationship

More information

Series of Shares B, B-6, E, F, F-6, O B, E, F, O O A, B

Series of Shares B, B-6, E, F, F-6, O B, E, F, O O A, B No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. The Funds and their securities offered under this Annual Information Form are

More information

The Right Way to Assess ETFs Liquidity

The Right Way to Assess ETFs Liquidity The Right Way to Assess ETFs Liquidity Key Facts to Bear in Mind 1. When it comes to liquidity, ETF shares are not comparable with stocks. One of the key, and widely recognized, benefits of Exchange Traded

More information

Stock Market -Trading and market participants

Stock Market -Trading and market participants Stock Market -Trading and market participants Ruichang LU ( 卢 瑞 昌 ) Department of Finance Guanghua School of Management Peking University Overview Trading Stock Understand trading order Trading cost Margin

More information

ETF Options. Presented by The Options Industry Council 1-888-OPTIONS

ETF Options. Presented by The Options Industry Council 1-888-OPTIONS ETF Options Presented by The Options Industry Council 1-888-OPTIONS ETF Options Options involve risks and are not suitable for everyone. Prior to buying or selling options, an investor must receive a copy

More information

Where you hold your investments matters. Mutual funds or ETFs? Why life insurance still plays an important estate planning role

Where you hold your investments matters. Mutual funds or ETFs? Why life insurance still plays an important estate planning role spring 2016 Where you hold your investments matters Mutual funds or ETFs? Why life insurance still plays an important estate planning role Should you undo a Roth IRA conversion? Taxable vs. tax-advantaged

More information

Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated after the close of business on June 24, 2016.

Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated after the close of business on June 24, 2016. NUVEEN INTELLIGENT RISK CONSERVATIVE ALLOCATION FUND SUPPLEMENT DATED APRIL 18, 2016 TO THE SUMMARY PROSPECTUS DATED DECEMBER 31, 2015 Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated

More information

Supplement to the Prospectus and Summary Prospectuses Dated April 28, 2015

Supplement to the Prospectus and Summary Prospectuses Dated April 28, 2015 Vanguard Large-Cap ETF Vanguard Growth ETF Vanguard Value ETF Vanguard Mid-Cap ETF Vanguard Mid-Cap Growth ETF Vanguard Mid-Cap Value ETF Vanguard Small-Cap ETF Vanguard Small-Cap Growth ETF Vanguard Small-Cap

More information

T. Rowe Price Target Retirement 2030 Fund Advisor Class

T. Rowe Price Target Retirement 2030 Fund Advisor Class T. Rowe Price Target Retirement 2030 Fund Advisor Class Supplement to Summary Prospectus Dated October 1, 2015 Effective February 1, 2016, the T. Rowe Price Mid-Cap Index Fund and the T. Rowe Price Small-Cap

More information

American Funds Insurance Series Portfolio Series. Prospectus May 1, 2015. American Funds Managed Risk Global Allocation Portfolio

American Funds Insurance Series Portfolio Series. Prospectus May 1, 2015. American Funds Managed Risk Global Allocation Portfolio American Funds Insurance Series Portfolio Series Prospectus May 1, 2015 Class 4 shares American Funds Global Growth Portfolio American Funds Growth and Income Portfolio Class P2 shares American Funds Managed

More information

BlackRock Diversified Income Portfolio. A portfolio from Fidelity Investments designed to seek income while managing risk

BlackRock Diversified Income Portfolio. A portfolio from Fidelity Investments designed to seek income while managing risk BlackRock Diversified Income Portfolio A portfolio from Fidelity Investments designed to seek income while managing risk Fidelity Investments has formed a strategic alliance with BlackRock Investment Management,

More information

TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus

TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP. Supplement to the Currently Effective Prospectus and Summary Prospectus TRANSAMERICA SERIES TRUST Transamerica Vanguard ETF Portfolio Conservative VP Supplement to the Currently Effective Prospectus and Summary Prospectus * * * The following replaces in their entirety the

More information

Vanguard U.S. Stock ETFs Prospectus

Vanguard U.S. Stock ETFs Prospectus Vanguard U.S. Stock ETFs Prospectus April 27, 2016 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard Total Stock Market Index Fund ETF Shares (VTI) Vanguard

More information

Score. Stifel CONQUEST Portfolios. Research-Driven Portfolios PORTFOLIO STRATEGY EXCHANGE TRADED FUNDS. Ease of Diversification

Score. Stifel CONQUEST Portfolios. Research-Driven Portfolios PORTFOLIO STRATEGY EXCHANGE TRADED FUNDS. Ease of Diversification Stifel CONQUEST Portfolios PORTFOLIO STRATEGY The Washington Crossing Advisors Stifel CONQUEST Portfolios seek to add value by actively allocating assets among U.S. equities, bonds, commodities, and foreign

More information

ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015

ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015 ADVISORSHARES GARTMAN GOLD/YEN ETF (NYSE Arca Ticker: GYEN) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of

More information

PURPOSE FUNDS. Simplified Prospectus PURPOSE PREMIUM YIELD FUND. ETF shares, Series A shares and Series F shares

PURPOSE FUNDS. Simplified Prospectus PURPOSE PREMIUM YIELD FUND. ETF shares, Series A shares and Series F shares No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. PURPOSE FUNDS Simplified Prospectus PURPOSE PREMIUM YIELD FUND ETF shares, Series

More information

Debunking myths about ETF liquidity

Debunking myths about ETF liquidity NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Debunking myths about ETF liquidity May 2015 IN BRIEF Many investors believe that individual stocks and exchange-traded funds (ETFs) share similar liquidity

More information

AN INTRODUCTION TO ishares EXCHANGE TRADED FUNDS REPLACED

AN INTRODUCTION TO ishares EXCHANGE TRADED FUNDS REPLACED AN INTRODUCTION TO ishares EXCHANGE TRADED FUNDS IMAGE TO BE REPLACED What are ishares ETFs? ishares IS THE WORLD LEADER IN EXCHANGE TRADED FUNDS ishares exchange traded funds (ETFs) blend the benefits

More information

ADVISORSHARES TRUST. AdvisorShares Pacific Asset Enhanced Floating Rate ETF NYSE Arca Ticker: FLRT

ADVISORSHARES TRUST. AdvisorShares Pacific Asset Enhanced Floating Rate ETF NYSE Arca Ticker: FLRT ADVISORSHARES TRUST AdvisorShares Pacific Asset Enhanced Floating Rate ETF NYSE Arca Ticker: FLRT Supplement dated February 26, 2016 to the Summary Prospectus, Prospectus, and Statement of Additional Information

More information