How to Select Exchange Traded Funds

Size: px
Start display at page:

Download "How to Select Exchange Traded Funds"

Transcription

1 How to Select Exchange Traded Funds January 2011

2 ETFs combine the benefits of mutual funds and equities Mutual fund + Equities = Exchange traded fund (ETF) Flexibility: Bought and sold any time during the trading day. Liquidity: Large volumes. Diversification: An entire index through a single transaction. Transparency: NAVs, costs and performance figures, fund holdings etc. Cost-effectiveness: ETFs do not require active management. Investor protection: ETFs are mutual funds. 1

3 AGENDA Replication strategies and Risks Performance and costs of ETFs Trading and liquidity of ETFs Impact of ETF domicile 2

4 Before we start the evaluation What market would we like exposure to? What index would we like to track/beat? Alpha or beta? What type of beta? 3

5 SECTION 1 Replication strategies and Risks

6 Index replication strategies Index replication strategies Full replication Stratified sampling Synthetic replication Physical holding of all securities in the index Regular transactions and cash flows Applied for liquid large cap indices with a limited number of index constituents Physical holding of a subset of index Optimization strategies / tools are applied Applied for very broad indices or indices with illiquid securities Replication with swaps (or other derivates) The fund holds a basket of securities and enters into a swap agreement to exchange performance of this basket for the performance of the reference index Counterparty risk in the fund is limited to 10% to be in line with UCITS III 5

7 Risk assessment ETFs incur no issuer risk but can have counterparty risks In contrast to ETCs and ETNs, ETFs hold underlying securities in a ring-fenced separate account exposing the investor to no issuer risk Assessment criteria Swaps / Derivatives Description Use of swaps other derivates Securities lending Lending of securities by the ETF Counterparties Collateral Swap counterparties Sec. lending counterparties Substitute basket (swap-based) Collateralization of counterparty risks Collateralization level Type of collateral Custodian bank for collateral Custodian bank Ring-fencing of collateral Note: Swap counterparty risk is limited to a maximum of 10% of the value of the fund under UCITS rules. 6

8 SECTION 2 Performance and costs of ETFs

9 Performance drivers Performance driven by many factors Negative impact Cash drag Positive impact Securities lending Management fees Index events management Performance of ETFs Impact positive or negative Rebalancing costs Replication strategy Trading costs (indirect) Domicile 8

10 Costs not fully reflected in TER The total expense ratio (TER) is an important selection criterion for ETFs. However, the TER is only one element of total costs accruing to the investor: TER Trading costs Rebalancing costs Swap pricing Additional revenues Total costs ETF % 0.05% 0.01% 0.00% -0.15% 0.16% ETF % 0.05% 0.00% 0.20% -0.15% 0.20% Trading costs: bid-ask spread and broker commissions Rebalancing costs: due to index changes Swap pricing: price for swap paid by the ETF to the swap counterparty Additional revenues: e.g. from securities lending or enhancements from the swap counterparty 9

11 Revenues to the benefit of investors ETF investors can benefit in two ways from securities lending: Securities lending by the fund Lending the index constituents securities Securities lending by the fund Additional revenues of 0-20 bps p.a. depending on the underlying securities Revenues are reflected in the NAV Securities lending by the investor Lending the ETF shares Securities lending by large ETF shareholders Additional revenues of 0-5 bps p.a. depending on the underlying securities The combination of securities lending revenues from within and of the ETF can help investors offset the Total Expense Ratio (TER) incurred while holding their ETF position. 10

12 Very low or even negative net costs Example: UBS-ETF EURO STOXX 50 I (in basis points) Total expense ratio (TER) Securities lending revenues Net costs accruing to investors negative Data as at 31 December 2010 Source: UBS Global Asset Management These figures refer to the past. Past securities lending revenues are not a reliable indicator of future securities lending revenues. 11

13 SECTION 3 Trading and liquidity of ETFs

14 Secondary and primary market Secondary market Most investors buy and sell ETF units in the secondary market via a broker on the relevant stock exchange. ETF size and AuM do not increase. Stock exchange (e.g. SIX) 3 2 Cash ETF units Broker 4 1 Cash ETF units Investor (buyer) Primary market Designated authorized participants can create or redeem ETF units with the fund. This creation-redemption process takes place once per day after the market close. ETF (fund) 3 2 Cash or securities Newly issued ETF units Authorized participant (AP) 4 1 Cash ETF units Broker on behalf of investor (buyer) 13

15 Primary market OTC trading for larger volumes OTC trading exists for larger trading volumes Trading volume beyond the order book More attractive pricing for clients There are 3 main types of OTC trading most common type of order: trading at a risk price, i.e. the market maker quotes a binding maximum spread (inav as reference) trading versus an ETF NAV (commission-based) trading on the closing price (commission-based) 14

16 SECTION 4 Impact of ETF domicile

17 Withholding taxes impact performance Many indices are calculated net of tax (e.g. EURO STOXX 50). This means that normal withholding taxes are deducted from dividends when calculating the index. Withholding tax reclaims are not considered. Funds reclaim withholding taxes to a certain extent based on double-tax treaties between the fund domicile country and the home countries of the underlying securities of the index: Country weighting EURO STOXX 50 Luxembourg ETF Ireland ETF Dividend Dividend Witholdin Dividend Dividend Withholdin Dividend Dividend Withholding withheld reclaim g taxes net withheld reclaim g taxes net withheld reclaim taxes net France 34.9% 25.0% 0.0% 25.0% 25.0% 0.0% 25.0% 25.0% 10.0% 15.0% Germany 26.2% % 0.0% % % % 15.0% 26.4% 0.0% 26.4% Sp ai n 16.3% 18.0% 0.0% 18.0% 18.0% 3.0% 15.0% 18.0% 3.0% 15.0% It aly 11.2% 27.0% 0.0% 27.0% 27.0% 0.0% 27.0% 27.0% 12.0% 15.0% Net herlands 5.2% 15.0% 0.0% 15.0% 15.0% 0.0% 15.0% 15.0% 0.0% 15.0% Finland 2.4% 28.0% 0.0% 28.0% 15.0% 0.0% 15.0% 15.0% 0.0% 15.0% Luxembourg 1.5% 15.0% 0.0% 15.0% 15.0% 15.0% 0.0% 15.0% 0.0% 15.0% Belgium 1.4% 25.0% 0.0% 25.0% 25.0% 0.0% 25.0% 25.0% 10.0% 15.0% Ireland 0.9% 20.0% 0.0% 20.0% 20.0% 0.0% 20.0% 20.0% 20.0% 0.0% To t al 23.8% 19.8% 17.8% Luxembourg charges taxe d abonnement on all ETFs (1 bps for ETFs) 16

18 SECTION 5 Summary

19 ETFs are not all the same Selection criteria Replication strategy Risks Performance Tracking error Management fee / costs Liquidity Currency Domicile / registration and stock exchange Description Cash-based (full replication, stratified sampling) Swap-based Swap counterparty risk (swap-based) Securities lending risk (cash-based) Performance versus benchmark Long-term track record Tracking error measures how closely an ETF follows the index Total expense ratio Consideration of additional costs (trading costs) Bid-ask spreads, flow sizes Market makers Fund currency (currency of the underlying index) Trading currency Tax-efficient set-up (withholding taxes, stamp duty) 18

20 Disclaimer UBS Global Asset Management (UK) Ltd is a subsidiary of UBS AG. Registered in England, authorised and regulated by the Financial Services Authority: UBS Global Asset Management (UK) Ltd, UBS Global Asset Management Funds Ltd, UBS Global Asset Management Life Ltd. Telephone calls may be recorded. UBS The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. This document is for Professional Clients only. It is not to be distributed to or relied upon by Retail Clients under any circumstances. This material supports the presentation(s) given. It is not intended to be read in isolation and may not provide a full explanation of all the topics that were presented and discussed. Care has been taken to ensure the accuracy of the content, but no responsibility is accepted for any errors or omissions. Please note that past performance is not a guide to the future. The value of investments and the income from them may go down as well as up, and investors may not get back the original amount invested. This document is a marketing communication. Any market or investment views expressed are not intended to be investment research. The document has not been prepared in line with the FSA requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. The information contained in this document should not be considered a recommendation to purchase or sell any particular security and the opinions expressed are those of UBS Global Asset Management and are subject to change without notice. Furthermore, there can be no assurance that any trends described in this document will continue or that forecasts will occur because economic and market conditions change frequently. This document does not create any legal or contractual obligation with UBS Global Asset Management. The recipient agrees that this information shall remain strictly confidential where it relates to the Investment Manager's business. The prior consent of UBS Global Asset Management (UK) Ltd should be obtained prior to the disclosure of commercially sensitive information to a third party (excluding the professional advisors of the recipient). Information reasonably deemed to be commercially sensitive and obtained from UBS Global Asset Management (UK) Ltd should not be disclosed. This information is supplied with a reasonable expectation that it will not be made public. If you receive a request under the Freedom of Information Act 2000 for information obtained from UBS Global Asset Management (UK) Ltd we ask that you consult with us. We also request that any information obtained from UBS Global Asset Management (UK) Ltd in your possession is destroyed as soon as it is no longer required. 19

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

The Evolution of Swap-based ETFs

The Evolution of Swap-based ETFs For professional investors only The Evolution of Swap-based ETFs September 2010 Increased investor interest in exchange-traded products has led to the rapid growth of the European ETP market in recent

More information

ETFs and Index Funds. Similarities and Differences. For professional clients only

ETFs and Index Funds. Similarities and Differences. For professional clients only ETFs and Index Funds Similarities and Differences For professional clients only Most Exchange Traded Funds (ETFs) and index tracker funds share a common aim. That is, to match the performance of the index

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

ETF Due Diligence How to select the most efficient instrument

ETF Due Diligence How to select the most efficient instrument ETF Due Diligence How to select the most efficient instrument Ursula Marchioni, Chief Strategist EMEA, ishares February 2016 The growth of index investing and of ETFs: Reasons, benefits, usages The Growth

More information

ETFs and Index Funds. Similarities and Differences. For professional clients only

ETFs and Index Funds. Similarities and Differences. For professional clients only ETFs and Index Funds Similarities and Differences For professional clients only Most Exchange Traded Funds (ETFs) and index tracker funds share a common aim. That is, to match the performance of the index

More information

Exchange Traded Funds. Reasons to Consider. For professional clients only

Exchange Traded Funds. Reasons to Consider. For professional clients only Exchange Traded Funds Reasons to Consider For professional clients only Exchange Traded Funds (ETFs) have been designed to provide low-cost and transparent access to the world s markets, combining the

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

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

Board Oversight of Exchange-Traded Funds

Board Oversight of Exchange-Traded Funds Board Oversight of Exchange-Traded Funds October 2012 Nothing contained in this paper is intended to serve as legal advice. Each investment company board should seek the advice of counsel for issues relating

More information

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

SPDR S&P 500 Low Volatility UCITS ETF

SPDR S&P 500 Low Volatility UCITS ETF SSGA SPDR ETFs Europe I Plc 2 November 2015 SPDR S&P 500 Low Volatility UCITS ETF Supplement No. 32 (A sub-fund of SSGA SPDR ETFs Europe I plc (the Company ) an open-ended investment company constituted

More information

madesimple Exchange Traded Funds

madesimple Exchange Traded Funds madesimple 0 0 Exchange Traded Funds October 2014 0 0 Acknowledgements We would like to thank ishares for their invaluable help in assisting us to produce this guide. This guide is for information only.

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

Exchange Traded Funds

Exchange Traded Funds Exchange Traded Funds Simple products. Sophisticated strategies. ETFs Exchange Traded Funds (ETFs) are essentially straightforward index-tracking instruments but in the hands of a skilful professional

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

Guidelines for competent authorities and UCITS management companies

Guidelines for competent authorities and UCITS management companies Guidelines for competent authorities and UCITS management companies Guidelines on ETFs and other UCITS issues 01/08/2014 ESMA/2014/937EN Date: 01/08/2014 ESMA/2014/937EN Table of Contents I. Scope 3 II.

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

SUPPLEMENT Davy Strategic Global Equity Fund

SUPPLEMENT Davy Strategic Global Equity Fund Davy Funds p.l.c. An open-ended umbrella investment company with variable capital and segregated liability between sub-funds incorporated with limited liability in Ireland under the Companies Acts 1963

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

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

EXCHANGE TRADED PRODUCTS (ETFs & ETNs)

EXCHANGE 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 information

db x-trackers Simply buy the market db x-trackers ETFs Quality made by Deutsche Bank A 10 Step Guide to Exchange Traded Funds A Passion to Perform.

db x-trackers Simply buy the market db x-trackers ETFs Quality made by Deutsche Bank A 10 Step Guide to Exchange Traded Funds A Passion to Perform. db x-trackers Simply buy the market db x-trackers ETFs Quality made by Deutsche Bank A 10 Step Guide to Exchange Traded Funds A Passion to Perform. Contents 3 Introduction 4 Step 1 What are ETFs? 5 Step

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

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

Xetra. 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 information

Put ETFs to work for your clients

Put 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 information

The base currency of the Sub-Fund EUR.

The base currency of the Sub-Fund EUR. UBS ETF SICAV Investment Company with Variable Capital Registered under Part I of the Luxembourg law of December 20, 2002 This simplified prospectus is valid as of 29 September 2009 September 2009 Simplified

More information

EXCHANGE Traded Funds

EXCHANGE Traded Funds EXCHANGE TRADED FUNDS EXCHANGE Traded Funds Guide to listing on the Cayman Islands Stock Exchange Contents Introduction... 3 What CSX has to offer... 4 The listing process... 6 Conditions for listing...

More information

Under the surface. Focus on ETF Liquidity. For professional clients only

Under the surface. Focus on ETF Liquidity. For professional clients only Under the surface Focus on ETF Liquidity For professional clients only Introduction ETFs have been designed as highly liquid investment vehicles, allowing investors to establish both long and short term

More information

Adviser Guide to ETFs. i want more efficient client investments. i need complete portfolio transparency. i like that ETFs give me both.

Adviser Guide to ETFs. i want more efficient client investments. i need complete portfolio transparency. i like that ETFs give me both. FOR PROFESSIONAL INVESTORS ONLY i want more efficient client investments. i need complete portfolio transparency. i like that ETFs give me both. Adviser Guide to ETFs 2 Adviser guide to ETFs Exchange Traded

More information

ETFX FUND COMPANY PUBLIC LIMITED COMPANY

ETFX FUND COMPANY PUBLIC LIMITED COMPANY The Company and the Directors, whose names appear on page 131 of the Prospectus, are the persons responsible for the information contained in this Fund Supplement and accept responsibility accordingly.

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

ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS)

ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS) ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS) DIVERSIFY WITH HIGH YIELDING U.S. EQUITIES 1 WHAT IS ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF? AT A GLANCE Benchmark S&P 500 Low Volatility

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

PART III TERMS APPLICABLE TO RESPECTIVE ACCOUNTS Schedule A Terms for Cash Account / Margin Account. 5. Pilot Programme for Trading US Securities

PART III TERMS APPLICABLE TO RESPECTIVE ACCOUNTS Schedule A Terms for Cash Account / Margin Account. 5. Pilot Programme for Trading US Securities Additional information to the Client Trading Master Document Terms and Conditions (Version 6) are set out in this appendix. To download the online version, please visit our company website http://www.cashon-line.com.

More information

Adviser Guide to ETFs FOR PROFESSIONAL CLIENTS ONLY

Adviser Guide to ETFs FOR PROFESSIONAL CLIENTS ONLY Adviser Guide to ETFs FOR PROFESSIONAL CLIENTS ONLY 2 Adviser guide to ETFs Exchange Traded Funds (ETFs) are revolutionising the way investors and their advisers manage portfolios. ETFs are efficient,

More information

Jupiter Merlin International Equities Portfolio

Jupiter Merlin International Equities Portfolio Jupiter Merlin Funds Jupiter Merlin International Equities Portfolio Jupiter Asset Management Limited Product Key Facts April 2016 Product Key Facts This statement provides you with key information about

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

SSgA SPDR ETFs EUROPE II PLC SPDR RUSSELL 2000 U.S. SMALL CAP UCITS ETF

SSgA SPDR ETFs EUROPE II PLC SPDR RUSSELL 2000 U.S. SMALL CAP UCITS ETF SSgA SPDR ETFs EUROPE II PLC SPDR RUSSELL 2000 U.S. SMALL CAP UCITS ETF Supplement No. 18 12 February 2015 (A sub-fund of SSgA SPDR ETFs Europe II plc, an open-ended investment company constituted as an

More information

Exchange Traded Funds and the UCITS Framework

Exchange Traded Funds and the UCITS Framework Exchange Traded Funds and the UCITS Framework 0 EXCHANGE TRADED FUNDS AND THE UCITS FRAMEWORK Introduction An Exchange Traded Fund ( ETF ) is an investment vehicle that, in its typical form, is designed

More information

INTRODUCING ishares AND ETFs

INTRODUCING ishares AND ETFs INTRODUCING ishares AND ETFs Exchange Traded Funds (ETFs) have revolutionised the way investors manage their portfolios. ETFs are simple, flexible, cost-effective and offer opportunities to spread risk.

More information

db x-trackers MSCI World Telecom Services Index UCITS ETF (DR) Supplement to the Prospectus

db x-trackers MSCI World Telecom Services Index UCITS ETF (DR) Supplement to the Prospectus db x-trackers MSCI World Telecom Services Index UCITS ETF (DR) Supplement to the Prospectus This Supplement contains information in relation to the db x-trackers MSCI World Telecom Services Index UCITS

More information

DB Platinum CROCI Funds News Update

DB Platinum CROCI Funds News Update DB Platinum CROCI Funds News Update May 2014 Overview Following the introduction of the new ESMA-Guidelines for index funds/ ETFs 1 and also in order to improve certain areas of operational efficiency,

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

Principles for the Regulation of Exchange Traded Funds

Principles for the Regulation of Exchange Traded Funds Principles for the Regulation of Exchange Traded Funds Final Report BOARD OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS FR06/13 JUNE 2013 Copies of publications are available from: The International

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

ComStage 1. ComStage 1 DAX UCITS ETF. Issuer: Commerz Funds Solutions S.A. 29 June 2016

ComStage 1. ComStage 1 DAX UCITS ETF. Issuer: Commerz Funds Solutions S.A. 29 June 2016 PRODUCT KEY FACTS ComStage 1 ComStage 1 DAX UCITS ETF Issuer: Commerz Funds Solutions S.A. 29 June 2016 Quick facts This is an exchange traded fund. This statement provides you with key information about

More information

db x-trackers S&P 500 UCITS ETF (DR) Supplement to the Prospectus

db x-trackers S&P 500 UCITS ETF (DR) Supplement to the Prospectus db x-trackers S&P 500 UCITS ETF (DR) Supplement to the Prospectus This Supplement contains information in relation to db x-trackers S&P 500 UCITS ETF (DR) (the Fund ), a sub-fund of Concept Fund Solutions

More information

An easy way of investing offshore

An easy way of investing offshore A JSE / Deutsche Bank initiative An easy way of investing offshore Exchange Traded Funds ETFs Itrix DJ EURO STOXX 50 Itrix FTSE 100 Itrix ETFs allow you to Diversify your investment portfolio offshore

More information

Exchange Traded Funds: State of the Market, Regulation and Current Concerns

Exchange Traded Funds: State of the Market, Regulation and Current Concerns Governance and Regulation of Financial Institutions Academic Year 2011-2012 ECON-S528 Pr. Pierre Francotte Exchange Traded Funds: State of the Market, Regulation and Current Concerns Sébastien Evrard Vincent

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

What is the Issuer Driven ETF project?

What is the Issuer Driven ETF project? What is the Issuer Driven ETF project? Background on Traditional Bond An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks (source: Investopedia) Bond hold securities

More information

INDEX FUNDS AND EXCHANGE TRADED PRODUCTS COMPARED. Viewpoint IN THIS ISSUE. Examining different passive options for client portfolios

INDEX 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 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

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

Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders. Exchange-Traded Fund Symbol CUSIP #

Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders. Exchange-Traded Fund Symbol CUSIP # Information Circular: Reality Shares ETF Trust To: From: Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders NASDAQ / BX / PHLX Listing Qualifications

More information

Exchange Traded Funds from RBS The Royal Bank of Scotland plc is an authorised agent of The Royal Bank of Scotland N.V. in certain jurisdictions.

Exchange Traded Funds from RBS The Royal Bank of Scotland plc is an authorised agent of The Royal Bank of Scotland N.V. in certain jurisdictions. Market Access ETFs Exchange Traded Funds from RBS The Royal Bank of Scotland plc is an authorised agent of The Royal Bank of Scotland N.V. in certain jurisdictions. 2 Market Access ETFs The Royal Bank

More information

Description of business processes. ISO 20022 Securities dashboard - Description of business processes

Description of business processes. ISO 20022 Securities dashboard - Description of business processes of business processes ISO 20022 Securities dashboard - of business processes Securities of Business Processes Issuer Pre-Investment Decision This covers the information from the issuer to Edgar, etc. which

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

ETFs and Tax. Paul Amery, Moderator Editor www.indexuniverse.eu. Yvonne Kunihira-Davidson, Panelist Director Burt, Staples & Maner LLP

ETFs and Tax. Paul Amery, Moderator Editor www.indexuniverse.eu. Yvonne Kunihira-Davidson, Panelist Director Burt, Staples & Maner LLP ETFs and Tax Paul Amery, Moderator Editor www.indexuniverse.eu Yvonne Kunihira-Davidson, Panelist Director Burt, Staples & Maner LLP Nathan Hall, Panelist Partner KPMG Dan Draper, Panelist Global Head

More information

Emerging Markets Equity Rules of the investment basket, valid as of 2 May 2013

Emerging Markets Equity Rules of the investment basket, valid as of 2 May 2013 Emerging Markets Equity Rules of, valid as of 2 May 2013 Main terms and conditions of the investment Name of : Mandatum Life Emerging Markets Equity Target market of : Equities and equity-related securities

More information

Module 2 What are ETFs?

Module 2 What are ETFs? Module 2 What are ETFs? Course #: Title Topic 1: Features... 3 Underlying indices... 3 Accurate price tracking... 3 Trades at NAV... 3 Open-ended... 4 Exchange traded... 4 Topic 2: How ETFs are created...

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

General Risk Disclosure

General Risk Disclosure General Risk Disclosure Colmex Pro Ltd (hereinafter called the Company ) is an Investment Firm regulated by the Cyprus Securities and Exchange Commission (license number 123/10). This notice is provided

More information

Advantages of Pictet index funds versus ETFs. Habib Nasrallah September 2011

Advantages of Pictet index funds versus ETFs. Habib Nasrallah September 2011 Advantages of Pictet index funds versus ETFs Habib Nasrallah September 2011 Pictet s Index Funds offering Pictet-USA Index Since: 05.11.1999 Fund size: USD 1319 m S&P 500 Pictet-Europe Index Since: 23.04.1999

More information

Principles for the Regulation of Exchange Traded Funds

Principles for the Regulation of Exchange Traded Funds Principles for the Regulation of Exchange Traded Funds Consultation Report TECHNICAL COMMITTEE OF THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS CR05/12 MARCH 2012 This paper is for public consultation

More information

Exchange-Traded Fund RiverFront Dynamic Unconstrained Income ETF RiverFront Dynamic Core Income ETF

Exchange-Traded Fund RiverFront Dynamic Unconstrained Income ETF RiverFront Dynamic Core Income ETF Regulatory Bulletin RB-16-86 To: Subject: ETP HOLDERS RIVERFRONT DYNAMIC UNCONSTRAINED INCOME ETF RIVERFRONT DYNAMIC CORE INCOME ETF Compliance and supervisory personnel should note that, among other things,

More information

London Stock Exchange guide for private investors

London Stock Exchange guide for private investors London Stock Exchange guide for private investors Learn more about our markets Contents Background Background 01 Equity Securities 02 London Stock Exchange Group recognises the essential role that private

More information

db x-trackers MSCI World High Dividend Yield Index UCITS ETF (DR) Supplement to the Prospectus

db x-trackers MSCI World High Dividend Yield Index UCITS ETF (DR) Supplement to the Prospectus db x-trackers MSCI World High Dividend Yield Index UCITS ETF (DR) Supplement to the Prospectus This Supplement contains information in relation to db x-trackers MSCI World High Dividend Yield Index UCITS

More information

Contracts for Difference (CFDs)

Contracts for Difference (CFDs) Contract for Difference (CFDs) and FCA Disclosure Requirements What are Contract for Difference (CFDs) CFDs (also known as Synthetic Equity Swaps (SES)) are Over the Counter (OTC) transactions which allow

More information

TOOLS FOR EFFICIENTLY MANAGING BETA EXPOSURE: Index Funds, Futures, and Exchange-Traded Funds

TOOLS FOR EFFICIENTLY MANAGING BETA EXPOSURE: Index Funds, Futures, and Exchange-Traded Funds WHITE PAPER February 2015 Daniel Wamre, CFA Senior Portfolio Manager Emily Pechacek Investment Specialist TOOLS FOR EFFICIENTLY MANAGING BETA EXPOSURE: Index Funds, Futures, and Exchange-Traded Funds Beta

More information

Commerzbank Asset Management. Active. Passive. The perfect combination.

Commerzbank Asset Management. Active. Passive. The perfect combination. Commerzbank Asset Management Active. Passive. The perfect combination. Contents Commerzbank Asset Management 04 Active Asset Management 05 Passive Asset Management 07 Private Labelling 09 Disclaimer 11

More information

Vanguard Investments Hong Kong Limited December 2015

Vanguard Investments Hong Kong Limited December 2015 PRODUCT KEY FACTS Vanguard FTSE Developed Europe Index ETF Vanguard Investments Hong Kong Limited December 2015 This is an exchange traded fund. This statement provides you with key information about this

More information

EFAMA s Submission to ESMA on Issues related to Exchange Traded Funds (ETFs)

EFAMA s Submission to ESMA on Issues related to Exchange Traded Funds (ETFs) EFAMA s Submission to ESMA on Issues related to Exchange Traded Funds (ETFs) EFAMA is the representative association for the European investment management industry. It represents through its 26 member

More information

EXCHANGE TRADED FUNDS (ETFs) (FAQ) Athens Exchange S.A.

EXCHANGE TRADED FUNDS (ETFs) (FAQ) Athens Exchange S.A. EXCHANGE TRADED FUNDS (ETFs) Frequently Asked Questions (FAQ) Athens Exchange S.A. November 2007 Important Notice The Athens Exchange S.A. (ATHEX) believes that the information presented on this web page

More information

Ten PowerShares Exchange-Traded Fund Trust Funds to Begin Trading on NASDAQ on September 20, 2006 (Financial Products Update #2006-xxx)

Ten PowerShares Exchange-Traded Fund Trust Funds to Begin Trading on NASDAQ on September 20, 2006 (Financial Products Update #2006-xxx) To: Head of NASDAQ Trading Head of ETF Trading Structured Products Traders Compliance Officers From: William Slattery Director PHLX Listing Qualifications Department Re: Ten PowerShares Exchange-Traded

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

SIMPLE PRODUCTS, SOPHISTICATED STRATEGIES. ETF Exchange Traded Funds

SIMPLE PRODUCTS, SOPHISTICATED STRATEGIES. ETF Exchange Traded Funds SIMPLE PRODUCTS, SOPHISTICATED STRATEGIES ETF Exchange Traded Funds Index Introduction 1 Exchange Traded Funds: 3 - What they are - Main features - Investment modalities Structured ETFs: 6 - What they

More information

Will Exchange-Traded Funds Replace Conventional Mutual Funds? Presentation by Gary L. Gastineau

Will Exchange-Traded Funds Replace Conventional Mutual Funds? Presentation by Gary L. Gastineau Will Exchange-Traded Funds Replace Conventional Mutual Funds? Presentation by Gary L. Gastineau The Merrill Lynch Center for the Study of International Financial Services and Markets Hofstra University

More information

Understanding Exchange Traded Funds (ETFs)

Understanding 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 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

ADVANCE INTERNATIONAL SHARES MULTI-BLEND FUND Product Disclosure Statement (PDS)

ADVANCE INTERNATIONAL SHARES MULTI-BLEND FUND Product Disclosure Statement (PDS) ADVANCE INTERNATIONAL SHARES MULTI-BLEND FUND Product Disclosure Statement (PDS) Issued: 1 July 2015 ARSN 087 295 501 APIR ADV0053AU Contents 1. About Advance Asset Management Limited... 2 2. How the Fund

More information

ETF Trading: The Exceptions to the Rules Nicco Ferrarini Head of ishares Capital Markets Distribution Europe

ETF Trading: The Exceptions to the Rules Nicco Ferrarini Head of ishares Capital Markets Distribution Europe ETF Trading: The Exceptions to the Rules Nicco Ferrarini Head of ishares Capital Markets Distribution Europe FOR PROFESSIONAL INTERMEDIARIES ONLY Capital Markets - Execution Support Process Product Excellence

More information

Exchange traded fund, UCITS, Alternative Investment directive, financial stability, systemic risk.

Exchange traded fund, UCITS, Alternative Investment directive, financial stability, systemic risk. The regulatory regime of Exchange traded funds in the European Union Eddy Wymeersch University of Gent Exchange traded funds have become an essential part of our financial landscape: they stand globally

More information

SUPPLEMENT Davy Cautious Growth Fund

SUPPLEMENT Davy Cautious Growth Fund Davy Funds p.l.c. An open-ended umbrella investment company with variable capital and segregated liability between sub-funds incorporated with limited liability in Ireland under the Companies Acts 1963

More information

Module 3 Buying, holding and selling ETFs

Module 3 Buying, holding and selling ETFs Module 3 Buying, holding and selling ETFs Course #: Title Topic 1: Buying and selling ETFs... 3 How trading ETFs is similar to trading shares... 3 How trading ETFs is different from trading shares... 3

More information

ETPs for private investors

ETPs for private investors ETPs for private investors Simple products. Sophisticated strategies. ETPs Exchange Traded Products (ETPs) such as Exchange Traded Commodities (ETCs) and Exchange Traded Notes (ETNs) are listed exchange

More information

THE NT EUROPE (EX-UK) EQUITY INDEX FUND SUPPLEMENT TO THE PROSPECTUS DATED 17 NOVEMBER 2014 FOR NORTHERN TRUST INVESTMENT FUNDS PLC

THE NT EUROPE (EX-UK) EQUITY INDEX FUND SUPPLEMENT TO THE PROSPECTUS DATED 17 NOVEMBER 2014 FOR NORTHERN TRUST INVESTMENT FUNDS PLC THE NT EUROPE (EX-UK) EQUITY INDEX FUND SUPPLEMENT TO THE PROSPECTUS DATED 17 NOVEMBER 2014 FOR NORTHERN TRUST INVESTMENT FUNDS PLC 1 2 Supplement dated 17 November 2014 to the Prospectus dated 17 November

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

Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders. Exchange-Traded Fund Symbol CUSIP #

Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders. Exchange-Traded Fund Symbol CUSIP # Information Circular: FactorShares Trust To: From: Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders NASDAQ / BX / PHLX Listing Qualifications Department

More information

INFORMATION CIRCULAR: REALITY SHARES ETF TRUST

INFORMATION CIRCULAR: REALITY SHARES ETF TRUST INFORMATION CIRCULAR: REALITY SHARES ETF TRUST TO: FROM: Head Traders, Technical Contacts, Compliance Officers, Heads of ETF Trading, Structured Products Traders NASDAQ / BX / PHLX Listing Qualifications

More information

ETF. Exchange Traded Funds: simple products, sophisticated strategies

ETF. Exchange Traded Funds: simple products, sophisticated strategies ETF Exchange Traded Funds: simple products, sophisticated strategies ETF Exchange Traded Funds ETFs have become successful for Italian investors because of their fundamental characteristics simplicity,

More information

J.P. Morgan Equity Risk Premium Multi-Factor (Long Only) Index Series

J.P. Morgan Equity Risk Premium Multi-Factor (Long Only) Index Series J.P. Morgan Equity Risk Premium Multi-Factor (Long Only) Index Series QUESTIONS AND ANSWERS These Questions and Answers highlight selected information to help you better understand: 1. JPERPLMF: J.P. Morgan

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

GLG INVESTMENTS PLC GLG GLOBAL CONVERTIBLE UCITS FUND SIMPLIFIED PROSPECTUS 6 February 2009

GLG INVESTMENTS PLC GLG GLOBAL CONVERTIBLE UCITS FUND SIMPLIFIED PROSPECTUS 6 February 2009 GLG INVESTMENTS PLC GLG GLOBAL CONVERTIBLE UCITS FUND SIMPLIFIED PROSPECTUS 6 February 2009 This simplified prospectus contains key information in relation to GLG Global Convertible UCITS Fund (the Portfolio

More information

ANNUALIZED RETURN The average amount of money earned by an investment each year over a given time period.

ANNUALIZED RETURN The average amount of money earned by an investment each year over a given time period. 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

Re: ETRACS S&P GSCI Crude Oil Total Return Index ETN due February 22, 2046 To Begin Trading On NSX

Re: ETRACS S&P GSCI Crude Oil Total Return Index ETN due February 22, 2046 To Begin Trading On NSX Date: To: ETP Holders Re: ETRACS S&P GSCI Crude Oil Total Return Index ETN due February 22, 2046 To Begin Trading On NSX National Stock Exchange, Inc. ( NSX or the Exchange ) is issuing this Information

More information

db x-trackers MSCI World Telecom Services Index UCITS ETF (Prospective DR) 1 Supplement to the Prospectus

db x-trackers MSCI World Telecom Services Index UCITS ETF (Prospective DR) 1 Supplement to the Prospectus db x-trackers MSCI World Telecom Services Index UCITS ETF (Prospective DR) 1 Supplement to the Prospectus This Supplement contains information in relation to the db x-trackers MSCI World Telecom Services

More information