In addition to any brokerage commission that you might pay, ETPs have expense ratios, like mutual funds, calculated as a percentage of the assets invested, but they don’t have loads or 12b-1 fees. ETPs can track a wide variety of indexes across many asset classes, as well as different investment or trading strategies. Some are very well-known or broad market benchmarks or indexes, such as total stock or bond market indexes. Other ETPs track indexes that are more narrowly focused, such as those made up of companies in a specific industry sector or country, corporate bonds with particular credit ratings, or individual commodities or currencies. Some of the indexes and investment strategies used by ETPs can be quite sophisticated and might not have much performance history or, in some cases, easily accessible information. In general, though, an ETP is a security that’s listed on a U.S. exchange and seeks to provide exposure to the performance of a benchmark (such as the price of gold), an index (such as the S&P 500) or an actively managed strategy.
- This could lead to a loss if the value of the ETN when called is less than the market price you paid.
- Other ETPs track indexes that are more narrowly focused, such as those made up of companies in a specific industry sector or country, corporate bonds with particular credit ratings, or individual commodities or currencies.
- 5The Fund’s adviser has contractually agreed, through at least October 31, 2026, to waive its management fee to 0.75% of the Fund’s average daily net assets.
- Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider.
Exchange-traded funds (ETFs) are the most common and most well-known type of ETP, but ETPs also include exchange-traded notes (ETNs), commodity pools and other product types. Some ETPs can offer a convenient and cost-effective way for investors to diversify their portfolio. Others might be designed for more tactical use or specialized exposure, such as single stock ETFs or ETNs that are tied to a narrow index or esoteric benchmark. As with any investment, ETPs can expose you to a range of risks, so understanding the products and how they work is important.
Exchange-Traded Funds and Products
The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited. Like ETFs, ETNs trade on exchanges, and their returns are linked to a market index or other benchmark. But ETNs aren’t pooled vehicles and don’t buy or hold shares of stock or other underlying assets. They’re unsecured debt obligations that, similar to bonds, are typically issued by a bank or other financial institution. Unlike bonds, however, ETNs generally don’t pay periodic interest to investors (though some that are income-focused might), and the return is primarily based on the performance of the index or benchmark to which they are linked. ETFs, like mutual funds, are pooled investment products that offer investors the opportunity to purchase shares of a fund that holds the assets it tracks.
Asset Class
Performance data for the most recent month-end is available by clicking on each ETF’s name above. Certain funds have fees waivers and/or expense reimbursements in effect. To view standardized returns for the funds, please click on any of the ETF names above. ETFs, like mutual funds, are pooled investment funds that offer investors an interest in a professionally managed, diversified portfolio of investments. But unlike mutual funds, ETF shares trade like stocks and can be bought or sold throughout the trading day calvenridge trust at fluctuating prices.
They’re also subject to bid-ask spreads, which represent the difference between the highest price a buyer will pay and the lowest price at which a seller will sell shares of a stock at any given time. The Information has not been submitted to, nor received approval from, the US SEC or any other regulatory body. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management or other measures. MSCI has established an information barrier between equity index research and certain Information. None of the Information in and of itself can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information.
Portfolio Characteristics
For performance information current to the most recent month end, please contact us. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries. Most ETPs are designed to track the performance of an underlying index; however, sometimes their performance may diverge. So-called “tracking error” occurs when the returns of the ETP deviate from the returns of its underlying benchmark, which can impact investor performance (either negatively or positively). An ETP’s price also might diverge significantly from the underlying value of its portfolio if, for example, there’s a disruption in the share redemption or creation process.
Know what type of ETP you’re investing in, since the structure can impact the product’s costs, risks and tax consequences. The vendor price is not necessarily the price at which the Fund values the portfolio holding for the purposes of determining its net asset value (the “valuation price”). Holdings data shown reflects the investment book of record, which may differ from the accounting book of record used for the purposes of determining the Net Assets of the Fund. Notional value represents the portfolio’s exposures based on the economic value of investments and options are delta-adjusted.
Exposure Breakdowns
Depending upon your level of trading, the sales charges you pay for each purchase or sale could erode your investment return. Some ETPs are designed to provide returns that are leveraged (such as two- or three-times) or inverse (such as the opposite or twice the opposite) of the return of the index or benchmark they track. These are typically referred to as leveraged or inverse (collectively, “geared”) ETPs. This geared exposure is usually for a specific period, like one day or one month, and such products are generally not designed to be held for periods that deviate from that.
Also, be aware of potential overlaps in the holdings or exposures provided by ETFs and how these might impact your overall level of diversification. For example, some ETFs with sustainable or socially responsible objectives might have very similar holdings to those of popular indexes that don’t have those objectives, and the same might be true of some actively managed ETFs. Before making any investment, know your financial objectives and understand the risks of the exact type of product you’re considering.