Exchange-Traded Funds
|
|
- Derek Nichols
- 7 years ago
- Views:
Transcription
1 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 of exchange-traded funds along with the different indices that can be tracked and be incorporated into an investor s portfolio. ETF s are normally invested in the stock or bond markets and therefore have all of the market risk associated with investing. An owner of an ETF can lose money. These can be risky investments. This paper will include some of the advantages and disadvantages of an ETF. These lists are not exclusive and you should discuss your particular circumstances with your advisor and the ETF prospectus. The Basics ETFs, short for exchange-traded funds, attempt to follow the performance of a specific index. For example, an ETF could track the S&P 500. They are a special breed of a mutual fund and come under the Investment Advisory Act of 1940 rules and regulations. Since ETF s trade on an exchange, their share price is affected by the supply and demand for shares in the market and the value of the underlying shares of stock being held or tracked. ETF s may mirror an index, basket of shares or commodities. A single ETF share is equal to a basket of shares that can include, for example, 10 shares of XYZ, 1000 shares of ABC, etc. In more common ETF s, if the index goes up by 1% then the share price will increase by 1% adjusted for fees. If the index goes down by 15% the ETF goes down by 15% adjusted for fees. Indices do not reflect any fees and there are fees for trading, custody, tracking and management. Individual investors can buy ETF s through an exchange, just like the purchase of stock. ETF s can be traded throughout the day from when the market opens until the market closes. When the fund is purchased through a broker, a brokerage commission fee must be paid at the time of purchase and selling of ETF shares. An ETF can be purchased through a registered
2 investment adviser and a fee will be paid while some ETF s can be bought directly from an exchange. Advantages Most ETFs are simple, inexpensive, liquid, and offer diversification. An investor does not have to wait for a valuation point, so the ETFs can be bought or sold at any given time of day that the market is open. Unlike a mutual fund, there is no fund manager making investment decisions as an investor moves their cash flows in and out. A computer program monitors the underlying holdings, e.g., shares of stock, bonds, or a commodity like gold. ETFs can be sold short, bought on margin and may have low or little minimum investment requirements, allowing the investor to purchase only one share while still having exposure to many different stocks. ETFs are normally based on a relevant index rather than an individual company, which can help spread the risk within a specific sector. ETF s provide an easy way for an investor to gain access to the index, commodity or basket of securities, without having to buy the positions in every single component. ETF portfolios can be modified to amplify various special interests. For example, a broad based international ETF could have enhanced positions in the European markets by having a supplemental European ETF purchased as well. Many ETF s follow an index, so there are few trades or turnover within the portfolio. Therefore, they may have more favorable tax treatment since stocks held will most likely be held for long term capital gains. This may not be true for a managed mutual fund that has high turnover. This allows the ETF to be favored in an after tax portfolio since the sale will follow normal long or short term capital gain rules without surprise tax implications from a managers actions throughout the course of the tax year.
3 Disadvantages Even though ETFs have many advantages, they also have several disadvantages. A client must evaluate his investment goals before deciding on the appropriate ETF. An ETF are risky investments and can and have lost money. The difference in the bid-ask price (which is explained below), may be too great to create ideal profits. Tracking errors can occur in an ETF. Tracking errors arise when not all shares of the index are held in the ETF, which in turn, will not exactly replicate the performance. Some ETF s do not physically hold the underlying asset, so it does not actually own the stock. It may create an artificial position, like holding a derivative, deriving its value from something else. The ETF must have a Principal that can provide the underlying stock for sale. This is another source for tracking error, but it also means taking a greater risk. When ETFs are harder to track, they are more complicated meaning more costs to the client. An ETF has a three day liquidation period so obtaining the cash from the sale of the security may be delayed longer than a corresponding mutual fund or stock. Uses Advisors are using significantly more ETFs when managing an individual s portfolio. ETFs are listed on major exchanges and can track broad markets, e.g., S&P 500 index, specific sectors such as pharmaceuticals, commodities (gold), and foreign markets (China). They can also be used for hedging, speculating, and ordinary investments. Certain ETFs can be bought to suit a client s objectives and the risk they wish to take on. ETFs can also increase one s exposure to a specific market where there are gaps in an individual s portfolio to make it complete. With the majority of trades of stocks generated electronically, with algorithmic formulas, buying and holding individual stocks can become more risky. The ETF s allow investors a broader exposure to the market.
4 Choosing the Right ETF When considering making an investment in ETFs, you should carefully analyze your objectives, risks, and expenses. After choosing which asset class you wish to invest in, there are a few things you must look at when researching which ETF is best. First is the expense ratio, which is the percentage of fund assets deducted to cover fees. Lower expense ratio does not necessarily mean best performance but it may have an impact if two like ETF s are compared. For example, if ETF One and Two are designed to mirror the S&P 500, and ETF One has a half of one percent more in fees, an investor may assume that the performance for ETF One will be less than ETF Two. The trade commission, the fee paid every time an investor buys or sells an ETF, should be determined. Some brokerage fees are higher than others. Look for the funds that have lower fees or commissions. For those ETF s traded on the open market, the bidask spread, which is the difference between the ETF price that an investor is willing to pay and the ask price that the seller is willing to accept should be determined. An investor should also review the fund s total assets under management; it will include the amount of money that has been already invested in the ETF. A smaller fund may have liquidity issues as well as greater tracking errors. Look at the average number of shares that are traded daily. This will provide a liquidity gauge. Lastly, research how the ETF s returns compare to the index returns; if it doesn t follow too close, then this could be a potentially risky investment.
5 Best of Both Worlds An ETF has some properties of stocks, and some properties of an index based mutual funds. An investor can have the best of both worlds in one investment. Like ownership of stock, ETFs have limit, market and stop-loss orders, which can be ideal for controlling your losses. Stocks can be traded on exchange throughout the day, providing the advantage with portfolio flexibility. ETFs can include a basket of securities designed to track a benchmark like an index mutual fund. They have low expense ratios, some with single digit basis points and are tax efficient, increasing an investor s net return on the investment. Most ETFs are open-ended investment companies (mutual funds), a type of company that allows investors to pool together assets, with opportunity to purchase or sell shares on request. Wrap Up An ETF s past performance has no guarantee towards its future results. Even though ETFs do not suit everyone s portfolio, the mixture of tax efficiency, competitive fees, and diversification can combine for a significant advantage over other investment options. Investors must remember, however, that the underlying investments are in the market and can be risky and lose money.
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 informationSTRATEGIES 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 informationMore informed trading Exchange Traded Funds (ETFs)
Exchange Traded Funds (ETFs) Expert Level Exchange-Traded Funds (ETFs) Exchange-traded funds (ETFs) are investment funds traded on stockmarkets. They are not mutual funds yet they offer all of the benefits
More informationNine 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 informationClient 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 information1 2 3 4 5 6 Say that you need to generate $4,000 per month in retirement and $1,000 will come from social security and you have no other pension. This leaves $3,000 per month, or $36,000 per year, that
More informationUnderstanding 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 information9 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 informationExchange-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 informationtrack, or replicate, the performance of an underlying index. Futures-based ETFs, on the other hand, invest in
Commodity Futures ETFs 1. Characteristics of Futures-based ETFs i. Definition Traditional ETFs represent baskets of securities that track, or replicate, the performance of an underlying index. Futures-based
More informationExchange 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 information9 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 informationPROFUNDS GROUP INVESTOR EDUCATION GUIDE 1 GEARED INVESTING. An introduction to leveraged and inverse funds
PROFUNDS GROUP INVESTOR EDUCATION GUIDE 1 GEARED INVESTING An introduction to leveraged and inverse funds GEARED FUNDS have generated a great deal of interest in recent years. Also known as LEVERAGED AND
More informationExchange-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 informationWhat 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 informationInvestment Education Series
Investment Education Series Types of Investment Funds Introduction Investment fund basically refers to a pool of funds, but our focus in this edition of GTBAM education series is to highlight the features,
More informationMutual Fund Investing Exam Study Guide
Mutual Fund Investing Exam Study Guide This document contains the questions that will be included in the final exam, in the order that they will be asked. When you have studied the course materials, reviewed
More informationRisk Disclosure Statement for CFDs on Securities, Indices and Futures
Risk Disclosure on Securities, Indices and Futures RISK DISCLOSURE STATEMENT FOR CFDS ON SECURITIES, INDICES AND FUTURES This disclosure statement discusses the characteristics and risks of contracts for
More informationExchange 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 informationFAQ. (Continued on page 2) An Investment Advisory Firm
FAQ An Investment Advisory Firm What is QASH Flow Advantage? It is a time-tested model that includes three strategic components: A portfolio of carefully selected Exchange-Traded Funds (ETFs) for diversification
More information9 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 informationINVESTMENT DICTIONARY
INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and
More informationADVISORSHARES 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 informationThe Stock Market for Beginners. Presenter Date
1 The Stock Market for Beginners Presenter Date What is a share? If you own a share, you own a portion of a company. In the same way you can see your ownership of a company as a slice of pie, cut out of
More informationA 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 informationETFs 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 informationADVISORSHARES 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 informationishares 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 informationExchange 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 informationUnderstanding Exchange Traded Funds (ETFs)
Level 7,34 Charles St Parramatta NSW 2150 PO Box 103 Parramatta NSW 2124 Phone: 02 9687 1966 Fax: 02 9635 3564 Web: www.carnegie.com.au Guide Build Protect Manage Wealth Understanding Exchange Traded Funds
More informationIndex 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 informationETFs 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 informationA guide to investing inexchange-traded products
A guide to investing inexchange-traded products What you should know before you buy Before you make an investment decision, it is important to review your financial situation, investment objectives, risk
More informationStock 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 informationADVISORSHARES 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 informationXetra. 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 informationExchange Traded Funds. A Prudent Investment Solution
Exchange Traded Funds A Prudent Investment Solution Exchange Traded Funds When it comes to investing, what is better, mutual funds or exchange traded funds (ETF)? Efficient Advisors believes that as long
More informationContents. 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 informationWealth 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 informationRISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS
RISK DISCLOSURE STATEMENT FOR SECURITY FUTURES CONTRACTS This disclosure statement discusses the characteristics and risks of standardized security futures contracts traded on regulated U.S. exchanges.
More informationPut ETFs to work for your clients
Put ETFs to work for your clients Contents 2 What are ETFs? 4 Potential benefits of ETFs 5 Comparing ETFs and mutual funds 6 How ETFs work 11 ETFs and indexing Exchange-traded funds (ETFs) are attracting
More informationWith interest rates at historically low levels, and the U.S. economy showing continued strength,
Managing Interest Rate Risk in Your Bond Holdings THE RIGHT STRATEGY MAY HELP FIXED INCOME PORTFOLIOS DURING PERIODS OF RISING INTEREST RATES. With interest rates at historically low levels, and the U.S.
More informationBrown 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 informationINVESTMENT TRANSLATED INTO HUMAN WORDS
INVESTMENT JARGON TRANSLATED INTO HUMAN WORDS Hi, The world of finance loves jargon, but it s overly confusing. Let s clear the air. Here s a concise walk-through of terms that are common, but often not
More informationFidelity Funds. Simplified Prospectus dated April 22, 2016. Series A, Series B and Series F units (unless otherwise indicated)
Simplified Prospectus dated April 22, 2016 Fidelity Funds Series A, Series B and Series F units (unless otherwise indicated) Balanced Funds Global Balanced Funds Fidelity Global Monthly Income Currency
More informationwww.optionseducation.org OIC Options on ETFs
www.optionseducation.org Options on ETFs 1 The Options Industry Council For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations,
More informationUse 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 informationStock Market for Beginners November 2013
Stock Market for Beginners November 2013 What is a share? If you own a share, you own a portion of a company. In the same way you can see your ownership of a company as a slice of pie, cut out of a bigger
More informationThe 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 informationExplore 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 informationBasic Strategies for Stocks
Csenge Advisory Group John Csenge, CIMC, AIF, CFP 4755 East Bay Drive Clearwater, FL 33764 ph: 727.437.6000 fx: 727.437.6650 admin@csenge.com www.csenge.com Basic Strategies for Stocks Page 1 of 5, see
More informationETF 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 informationUNDERSTANDING 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 informationMarket 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 informationFINANCIAL ENGINEERING CLUB TRADING 101
FINANCIAL ENGINEERING CLUB TRADING 101 WHAT IS TRADING TRADING/INVESTING is the act of putting capital to use, by either buying or selling securities, for the purpose of gaining profits. Buy low, sell
More informationRisk Warning Notice. Introduction
First Equity Limited Salisbury House London Wall London EC2M 5QQ Tel 020 7374 2212 Fax 020 7374 2336 www.firstequity.ltd.uk Risk Warning Notice Introduction You should not invest in any investment product
More informationLeveraged ETFs Explained
Leveraged ETFs Explained Published by Portfolio Research Partners General Leveraged Exchange Traded Funds are the subject of much recent discussion among investors. Leveraged ETFs are just like regular
More informationKKM ARMOR Fund Class A Shares (Symbol: RMRAX) Class I Shares (Symbol: RMRIX)
KKM ARMOR Fund Class A Shares (Symbol: RMRAX) Class I Shares (Symbol: RMRIX) KKM U.S. Equity ARMOR Fund Class A Shares (Symbol: UMRAX) Class I Shares (Symbol: UMRIX) Prospectus June 2, 2014 The U.S. Securities
More informationAdvantages and disadvantages of investing in the Stock Market
Advantages and disadvantages of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money.
More informationWHAT ARE MUTUAL FUNDS?
LESSON 6 WHAT ARE MUTUAL FUNDS? 89 LESSON 6 WHAT ARE MUTUAL FUNDS? LESSON DESCRIPTION The students form class investment clubs that work much in the way mutual funds do. They invest $3,000 (300 shares
More informationIndexIQ. Smart solutions for better portfolios. by MainStay Investments
IndexIQ Smart solutions for better portfolios by MainStay Investments An Innovative Marriage of ETFs and Alternative Investments In recent years, exchange-traded funds (ETFs) have steadily grown in popularity.
More informationSaving and Investing. Being an educated investor will help enable you to become financially sound. Chapters 30 and 31
Saving and Investing Being an educated investor will help enable you to become financially sound Chapters 30 and 31 Essential Questions How do you know when to save and when to invest? What are some reasons
More informationUnderstanding 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 informationXetra. The market. Xetra: Europe s largest trading. 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. 2 3 Deutsche Börse Group is the leading global service provider to the securities industry. Its
More informationMutual Funds and Other Investment Companies
Mutual Funds and Other Investment Companies Investment Companies Pool funds of individual investors and invest in a wide range of securities or other assets. pooling of assets Provide several functions
More informationThe following replaces similar text in the Investing With Vanguard section:
Vanguard Funds Supplement to the Prospectus Prospectus Text Changes The following replaces similar text for the second bullet point under the heading Frequent Trading or Market-Timing in the More on the
More informationTHE 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 informationProspectus 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 informationMutual Funds. A Guide for Investors. Information is an investor s best tool
Mutual Funds A Guide for Investors Information is an investor s best tool Mutual Funds Over the past decade, American investors increasingly have turned to mutual funds to save for retirement and other
More informationBest 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 informationEXCHANGE TRADED PRODUCTS (ETFs & ETNs)
EXCHANGE TRADED PRODUCTS (ETFs & ETNs) Now, for the first time ever, all South Africa s ETFs & ETNs on a single website www.etfsa.co.za Everything you need to know about ETFs and ETNs Transact online all
More informationUnderstanding 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 informationHigh School Lesson 7. Lesson 7 What are Mutual Funds? High School
High School Lesson 7 Lesson 7 What are Mutual Funds? High School L EARNING, EARNING AND I NVESTING, NATIONAL C OUNCIL ON E CONOMIC E DUCATION, NEW YORK, NY 89 7 What are Mutual Funds? LESSON 7 WHAT ARE
More informationWhere 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 informationContents. 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 informationInvestmentPerspectives October 2014
Investment Stewardship Guidance InvestmentPerspectives October 2014 Investing in MLPs: Which Vehicle is Right for You? JEREMY ZIRIN, CAIA, RESEARCH DATA ANALYST, ALTERNATIVES Since our last Master Limited
More informationINDEX FUNDS AND EXCHANGE TRADED PRODUCTS COMPARED. Viewpoint IN THIS ISSUE. Examining different passive options for client portfolios
This document is for investment professionals only and should not be relied upon by private investors INDEX FUNDS AND EXCHANGE TRADED PRODUCTS COMPARED Examining different passive options for client portfolios
More informationThere are two types of returns that an investor can expect to earn from an investment.
Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some
More informationModule 1 Introduction to ETFs
Module 1 Introduction to ETFs Course #: Title Topic 1: Big picture investing... 3 Which stock to buy?... 3 Why take a big picture approach?... 3 How can you invest in the market?... 4 Topic 2: What are
More informationBuy Bonds and Not Bond Funds By Hildy and Stan Richelson November 24, 2009
Buy Bonds and Not Bond Funds By Hildy and Stan Richelson November 24, 2009 Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
More informationBlackRock 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 informationAdvanced Strategies for Managing Volatility
Advanced Strategies for Managing Volatility Description: Investment portfolios are generally exposed to volatility through company-specific risk and through market risk. Long-term investors can reduce
More informationMutual Fund Basics TYPES OF MUTUAL FUNDS WHAT ARE THE BENEFITS OF INVESTING IN A MUTUAL FUND?
Mutual Fund Basics A mutual fund pools the money of many investors to purchase securities. The fund s manager buys securities to pursue a stated investment strategy. By investing in the fund, you ll own
More informationA Cheat Sheet to Help You Understand Investment Fees
A Cheat Sheet to Help You Understand Investment Fees Kate Ashford / LearnVest Nov. 19, 2015 Time Magazine Online: http://time.com/money/4120998/investment-fees-mutual-funds-etfs/ LearnVest: http://www.learnvest.com/2015/11/how-investment-fees-work/
More informationMutual Funds and Other Investment Companies Hedge Funds
Mutual Funds and Other Investment Companies Hedge Funds Chapter 4 & 26 McGraw-Hill/Irwin Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Lecture outline Introduction of investment
More informationInvesting. 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 informationInvestment Analysis (FIN 670) Fall 2009. Homework 2
Investment Analysis (FIN 670) Fall 2009 Homework 2 Instructions: please read carefully You should show your work how to get the answer for each calculation question to get full credit The due date is Tue,
More informationChapter 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 informationGlossary 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 informationPros and Cons of Different Investment Options
Pros and Cons of Different Investment Options In 2016, new legislation called CRM2 will come to Canada. Once enacted, all financial institutions in Canada will be required to disclose all investment management
More informationBASKET 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 information20 Major Advantages of Investing in Mutual Funds
20 Major Advantages of Investing in Mutual Funds Author: By Austin Pryor for [link:http://www.soundmindinvesting.com] In this article, I want to talk about why mutual funds should
More informationPositioning Life Insurance Opportunities. A simple way to tell a compelling story
Positioning Life Insurance Opportunities A simple way to tell a compelling story Table of Contents Three Buckets... 2 Supporting Tools & Resources... 5 Consumption... 6 Life Insurance Retirement Planning
More information1 Year 3 Years 5 Years 10 Years
Summary Prospectus Gerstein Fisher Multi-Factor International Growth Equity Fund Trading Symbol: GFIGX March 30, 2015 Before you invest, you may want to review the Fund s prospectus, which contains more
More informationWelcome to E * TRADE. Quick Start Guide. etrade.com/welcome 1-800-ETRADE-1 CUSTOMER SERVICE INVESTMENT CHOICES RESEARCH & TOOLS
Welcome to E * TRADE Quick Start Guide etrade.com/welcome 1-800-ETRADE-1 THE BEST OF THE ONLINE BROKERS 2012 CUSTOMER SERVICE INVESTMENT CHOICES RESEARCH & TOOLS It all starts with E*TRADE 360 Our one-page
More informationRevenueShares ETF Trust
RevenueShares ETF Trust SUMMARY PROSPECTUS NOVEMBER 3, 2015 RevenueShares Mid Cap Fund This summary prospectus is designed to provide investors with key fund information in a clear and concise format.
More informationINVESTING IN DEBENTURES?
INVESTING IN DEBENTURES? Independent guide for investors reading a prospectus for unlisted debentures This guide is for you, whether you re an experienced investor or just starting out. About ASIC The
More informationExchange 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 informationInvestment Committee Policy Statement
FINANCIAL MANAGEMENT ASSOCIATION Investment Committee Policy Statement The University of Hawaii Financial Management Association Prepared by FMA and Faculty Advisor 10/27/2008 Investment Committee portfolio
More information