As some financial advisors are now well aware, the term “ETF” is often used rather liberally to refer to a variety of different exchange-traded products that generally function in the same manner from the perspective of an investor. More accurately, ETFs can be described as a type of exchange-traded product, or ETP, an umbrella that also covers exchange-traded commodities, exchange-traded notes, and unit investment trusts (UITs). The nuances of these various structures might not make for the most lively discussion, but it is a worthwhile task for anyone who manages money for a living, as the seemingly minor differences between these types of products can often have a meaningful impact on risk taken on and bottom line returns realized [see 25 Things Every Financial Advisor Should Know About ETFs]. Most advisors are aware of the general differences between ETNs, which are debt instruments, and true ETFs, which feature no credit [...] Click here to read the original article on ETFdb.com. Related Posts: Commodity ETF Investing: Five Factors To Consider What’s The Difference? Understanding What Distinguishes Similar ETFs Ten Unexpected Observations On YTD ETF Returns 25 Things Every Financial Advisor Should Know About ETFs 10 Strange But True Facts About The ETF Industry
As some financial advisors are now well aware, the term “ETF” is often used rather liberally to refer to a variety of different exchange-traded products that generally function in the same manner from the perspective of an investor. More accurately, ETFs can be described as a type of exchange-traded product, or ETP, an umbrella that also covers exchange-traded commodities, exchange-traded notes, and unit investment trusts (UITs). The nuances of these various structures might not make for the most lively discussion, but it is a worthwhile task for anyone who manages money for a living, as the seemingly minor differences between these types of products can often have a meaningful impact on risk taken on and bottom line returns realized [see 25 Things Every Financial Advisor Should Know About ETFs]. Most advisors are aware of the general differences between ETNs, which are debt instruments, and true ETFs, which feature no credit [...]
Click here to read the original article on ETFdb.com.
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