贾洲生态园灯展:Exchange-traded fund - Wikipedia, the free encyclopedia

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.^[1] An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.^[2][3] ETFs are the most popular type of exchange-traded product.^{[citation needed]}

Only so-called authorized participants (typically, large institutional investors) actually buy or sell shares of an ETF directly from or to the fund manager, and then only in creation units, large blocks of tens of thousands of ETF shares, which are usually exchanged in-kind with basketsof the underlying securities. Authorized participants may wish toinvest in the ETF shares for the long-term, but usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidityof the ETF shares and help ensure that their intraday market priceapproximates to the net asset value of the underlying assets.^[4] Other investors, such as individuals using a retail broker, trade ETF shares on this secondary market.

An ETF combines the valuation feature of a mutual fund or unit investment trust, which can be bought or sold at the end of each trading day for its net asset value, with the tradability feature of a closed-end fund,which trades throughout the trading day at prices that may be more orless than its net asset value. Closed-end funds are not considered to be"ETFs", even though they are funds and are traded on an exchange. ETFshave been available in the US since 1993 and in Europe since 1999. ETFstraditionally have been index funds, but in 2008 the U.S. Securities and Exchange Commission began to authorize the creation of actively managed ETFs.^[4]

Contents

• 1 Structure
• 2 History
• 3 Investment uses
• 4 Types of ETFs
  • 4.1 Index ETFs
  • 4.2 Commodity ETFs or ETCs
  • 4.3 Bond ETFs
  • 4.4 Currency ETFs or ETCs
  • 4.5 Actively managed ETFs
  • 4.6 Exchange-traded grantor trusts
  • 4.7 Leveraged ETFs
• 5 ETFs compared to mutual funds
  • 5.1 Costs
  • 5.2 Taxation
  • 5.3 Trading
• 6 Criticism
• 7 Issuers of ETFs
• 8 See also
• 9 References
• 10 Further reading
• 11 External links

[edit] Structure

ETFs offer public investors an undivided interest in a pool of securitiesand other assets and thus are similar in many ways to traditionalmutual funds, except that shares in an ETF can be bought and soldthroughout the day like stocks on a securities exchange through abroker-dealer. Unlike traditional mutual funds, ETFs do not sell orredeem their individual shares at net asset value, or NAV. Instead,financial institutions purchase and redeem ETF shares directly from theETF, but only in large blocks, varying in size by ETF from 25,000 to200,000 shares, called "creation units". Purchases and redemptions ofthe creation units generally are in kind,with the institutional investor contributing or receiving a basket ofsecurities of the same type and proportion held by the ETF, althoughsome ETFs may require or permit a purchasing or redeeming shareholder tosubstitute cash for some or all of the securities in the basket ofassets.^[4]

The ability to purchase and redeem creation units gives ETFs an arbitragemechanism intended to minimize the potential deviation between themarket price and the net asset value of ETF shares. Existing ETFs havetransparent portfolios, so institutional investors will know exactlywhat portfolio assets they must assemble if they wish to purchase acreation unit, and the exchange disseminates the updated net asset valueof the shares throughout the trading day, typically at 15-secondintervals.^[4]

If there is strong investor demand for an ETF, its share price will(temporarily) rise above its net asset value per share, givingarbitrageurs an incentive to purchase additional creation units from theETF and sell the component ETF shares in the open market. Theadditional supply of ETF shares increases the ETF's market capitalizationand reduces the market price per share, generally eliminating thepremium over net asset value. A similar process applies when there isweak demand for an ETF and its shares trade at a discount from net assetvalue.

In the United States, most ETFs are structured as open-end managementinvestment companies (the same structure used by mutual funds and money market funds),although a few ETFs, including some of the largest ones, are structuredas unit investment trusts. ETFs structured as open-end funds havegreater flexibility in constructing a portfolio and are not prohibitedfrom participating in securities lending programs or from using futures and options in achieving their investment objectives.^[5]

Under existing regulations, a new ETF must receive an order from theSecurities and Exchange Commission, or SEC, giving it relief fromprovisions of the Investment Company Act of 1940that would not otherwise allow the ETF structure. In 2008, however, theSEC proposed rules that would allow the creation of ETFs without theneed for exemptive orders. Under the SEC proposal, an ETF would bedefined as a registered open-end management investment company that:

• Issues (or redeems) creation units in exchange for the deposit (or delivery) of basket assets the current value of which is disseminated per share by a national securities exchange at regular intervals during the trading day;
• Identifies itself as an ETF in any sales literature;
• Issues shares that are approved for listing and trading on a securities exchange;
• Discloses each business day on its publicly available web site the prior business day's net asset value and closing market price of the fund's shares, and the premium or discount of the closing market price against the net asset value of the fund's shares as a percentage of net asset value; and
• Either is an index fund, or discloses each business day on its publicly available web site the identities and weighting of the component securities and other assets held by the fund.^[4]

The SEC rule proposal would allow ETFs either to be index funds or tobe fully transparent actively managed funds. Historically, all ETFs inthe United States have been index funds. In 2008, however, the SEC beganissuing exemptive orders to fully transparent actively managed ETFs.The first such order was to PowerShares Actively Managed Exchange-Traded Fund Trust,^[6]and the first actively managed ETF in the United States was the BearStearns Current Yield Fund, a short-term income fund that began tradingon the American Stock Exchange under the symbol YYY on 25 March 2008.^[7]The SEC rule proposal indicates that the SEC may still consider futureapplications for exemptive orders for actively managed ETFs that do notsatisfy the proposed rule's transparency requirements.^[4]

Some ETFs invest primarily in commodities or commodity-basedinstruments, such as crude oil and precious metals. Although thesecommodity ETFs are similar in practice to ETFs that invest insecurities, they are not "investment companies" under the InvestmentCompany Act of 1940.^[4]

Publicly traded grantor trusts, such as Merrill Lynch'sHOLDRs securities, are sometimes considered to be ETFs, although theylack many of the characteristics of other ETFs. Investors in a grantortrust have a direct interest in the underlying basket of securities,which does not change except to reflect corporate actions such as stocksplits and mergers. Funds of this type are not "investment companies"under the Investment Company Act of 1940.^[8]

As of 2009, there were approximately 1,500 exchange-traded funds traded on US exchanges.^[9] This count uses the wider definition of ETF, including HOLDRs and closed-end funds.

[edit] History

ETFs had their genesis in 1989 with Index Participation Shares, an S&P 500 proxy that traded on the American Stock Exchange and the Philadelphia Stock Exchange. This product, however, was short-lived after a lawsuit by the Chicago Mercantile Exchange was successful in stopping sales in the United States.^[10]

A similar product, Toronto Index Participation Shares, started trading on the Toronto Stock Exchangein 1990. The shares, which tracked the TSE 35 and later the TSE 100stocks, proved to be popular. The popularity of these products led theAmerican Stock Exchange to try to develop something that would satisfySEC regulation in the United States.^[10]

Nathan Most and Steven Bloom, executives with the exchange, designed and developed Standard & Poor's Depositary Receipts (NYSE: SPY), which were introduced in January 1993.^[11][12] Known as SPDRs or "Spiders", the fund became the largest ETF in the world. In May 1995 they introduced the MidCap SPDRs (NYSE: MDY).

Barclays Global Investors, a subsidiary of Barclays plc, entered the fray in 1996 with World Equity Benchmark Shares, or WEBS, subsequently renamed iShares MSCI Index Fund Shares. WEBS tracked MSCIcountry indexes, originally 17, of the funds' index provider, MorganStanley. WEBS were particularly innovative because they gave casualinvestors easy access to foreign markets. While SPDRs were organized as unit investment trusts, WEBS were set up as a mutual fund, the first of their kind.^[13][14]

In 1998, State Street Global Advisors introduced the "Sector Spiders", which follow the nine sectors of the S&P 500.^[15] Also in 1998, the "Dow Diamonds" (NYSE: DIA) were introduced, tracking the famous Dow Jones Industrial Average. In 1999, the influential "cubes" (NASDAQ: QQQQ) were launched attempting to replicate the movement of the NASDAQ-100.

In 2000 Barclays Global Investorsput a significant effort behind the ETF marketplace, with a strongemphasis on education and distribution to reach long-term investors. TheiShares line waslaunched in early 2000. Within 5 years iShares had surpassed the assetsof any other ETF competitor in the U.S. and Europe. Barclays Global Investors was sold to BlackRock in 2009. The Vanguard Group entered the market in 2005.

Since then ETFs have proliferated, tailored to an increasinglyspecific array of regions, sectors, commodities, bonds, futures, andother asset classes. As of September 2010, there were 916 ETFs in theU.S., with $882 billion in assets, an increase of $189 billion over theprevious twelve months.^[16]

[edit] Investment uses

ETFs generally provide the easy diversification, low expense ratios, and tax efficiency of index funds, while still maintaining all the features of ordinary stock, such as limit orders, short selling, and options.Because ETFs can be economically acquired, held, and disposed of, someinvestors invest in ETF shares as a long-term investment for assetallocation purposes, while other investors trade ETF shares frequentlyto implement market timing investment strategies.^[5] Among the advantages of ETFs are the following:^[8][17]

• Lower costs – ETFs generally have lower costs than other investment products because most ETFs are not actively managed and because ETFs are insulated from the costs of having to buy and sell securities to accommodate shareholder purchases and redemptions. ETFs typically have lower marketing, distribution and accounting expenses, and most ETFs do not have 12b-1 fees.

• Buying and selling flexibility – ETFs can be bought and sold at current market prices at any time during the trading day, unlike mutual funds and unit investment trusts, which can only be traded at the end of the trading day. As publicly traded securities, their shares can be purchased on margin and sold short, enabling the use of hedging strategies, and traded using stop orders and limit orders, which allow investors to specify the price points at which they are willing to trade.

• Tax efficiency – ETFs generally generate relatively low capital gains, because they typically have low turnover of their portfolio securities. While this is an advantage they share with other index funds, their tax efficiency is further enhanced because they do not have to sell securities to meet investor redemptions.

• Market exposure and diversification – ETFs provide an economical way to rebalance portfolio allocations and to "equitize" cash by investing it quickly. An index ETF inherently provides diversification across an entire index. ETFs offer exposure to a diverse variety of markets, including broad-based indexes, broad-based international and country-specific indexes, industry sector-specific indexes, bond indexes, and commodities.

• Transparency – ETFs, whether index funds or actively managed, have transparent portfolios and are priced at frequent intervals throughout the trading day.

Some of these advantages derive from the status of most ETFs as index funds.

[edit] Types of ETFs

[edit] Index ETFs

Most ETFs are index funds that hold securities and attempt to replicate the performance of a stock market index.An index fund seeks to track the performance of an index by holding inits portfolio either the contents of the index or a representativesample of the securities in the index.^[5] Some index ETFs, known as leveraged ETFs or inverse ETFs, use investments in derivatives to seek a return that corresponds to a multiple of, or the inverse (opposite) of, the daily performance of the index.^[18]As of February 2008, index ETFs in the United States included 415domestic equity ETFs, with assets of $350 billion; 160global/international equity ETFs, with assets of $169 billion; and 53bond ETFs, with assets of $40 billion.^[19] As of November 2010 an index ETF, namely Standard & Poor's Depositary Receipts (SPDR S&P 500), was the largest ETF by market capitalization.^[20]

Some index ETFs invest 100% of their assets proportionately in thesecurities underlying an index, a manner of investing called"replication". Other index ETFs use "representative sampling", investing80% to 95% of their assets in the securities of an underlying index andinvesting the remaining 5% to 20% of their assets in other holdings,such as futures, option and swap contracts, and securities not in theunderlying index, that the fund's adviser believes will help the ETF toachieve its investment objective. For index ETFs that invest in indexeswith thousands of underlying securities, some index ETFs employ"aggressive sampling" and invest in only a tiny percentage of theunderlying securities.^[21][22]

[edit] Commodity ETFs or ETCs

Commodity ETFs invest in commodities, such as precious metals and futures. Among the first commodity ETFs were gold exchange-traded funds, which have been offered in a number of countries. The idea of a Gold ETF was first officially conceptualised by Benchmark Asset Management Company Private Ltd in India when they filed a proposal with the SEBI in May 2002.^[23] The first gold exchange-traded fund was Gold Bullion Securities launched on the ASX in 2003, and the first silver exchange-traded fund was iShares Silver Trust launched on the NYSE in 2006. As of November 2010 a commodity ETF, namely SPDR Gold Shares, was the second-largest ETF by market capitalization.^[24]

However, generally commodity ETFs are index funds tracking non-security indexes. Because they do not invest in securities, commodity ETFs are not regulated as investment companies under the Investment Company Act of 1940 in the United States, although their public offering is subject to SEC review and they need an SEC no-action letter under the Securities Exchange Act of 1934. They may, however, be subject to regulation by the Commodity Futures Trading Commission.^[25][26]

Exchange-traded commodities (ETCs) are investment vehicles (assetbacked bonds, fully collateralised) that track the performance of anunderlying commodity index including total return indices based on asingle commodity. Similar to ETFs and traded and settled exactly likenormal shares on their own dedicated segment, ETCs have market makersupport with guaranteed liquidity, enabling investors to gain exposureto commodities, on-Exchange, during market hours.

The earliest commodity ETFs (e.g., GLD and SLV) actually owned the physical commodity (e.g., gold and silver bars). Similar to these are NYSE: PALL (palladium) and NYSE: PPLT (platinum). However, most ETCs implement a futures trading strategy, which may produce quite different results from owning the commodity.

Commodity ETFs trade just like shares, are simple and efficient andprovide exposure to an ever-increasing range of commodities andcommodity indices, including energy, metals, softs and agriculture.However, it is important for an investor to realize that there are oftenother factors that affect the price of a commodity ETF that might notbe immediately apparent. For example, buyers of an oil ETF such as USOmight think that as long as oil goes up, they will profit roughlylinearly. What isn't clear to the novice investor is the method by whichthese funds gain exposure to their underlying commodities. In the caseof many commodity funds, they simply roll so-called front-month futurescontracts from month to month. This does give exposure to the commodity,but subjects the investor to risks involved in different prices alongthe term structure, such as a high cost to roll.^[27][28]

[edit] Bond ETFs

Exchange-traded funds that invest in bonds are known as bond ETFs.They thrive during economic recessions because investors pull theirmoney out of the stock market and into bonds (for example, governmenttreasury bonds or those issues by companies regarded as financiallystable). Because of this cause and effect relationship, the performanceof bond ETFs may be indicative of broader economic conditions.^[29]There are several advantages to bond ETFs such as the reasonabletrading commissions, but this benefit can be negatively offset by feesif bought and sold through a third party.^[30]

[edit] Currency ETFs or ETCs

In 2005, Rydex Investments launched the first ever currency ETF called the Euro Currency Trust (NYSE: FXE)in New York. Since then Rydex has launched a series of funds trackingall major currencies under their brand CurrencyShares. In 2007 Deutsche Bank's db x-trackers launched EONIA Total Return Index ETF in Frankfurt tracking the euro, and later in 2008 the Sterling Money Market ETF (LSE: XGBP) and US Dollar Money Market ETF (LSE: XUSD) in London. In 2009, ETF Securities launched the world's largest FX platform tracking the MSFX^SMIndex covering 18 long or short USD ETC vs. single G10 currencies. Thefunds are total return products where the investor gets access to the FXspot change, local institutional interest rates and a collateral yield.

[edit] Actively managed ETFs

Actively managed ETFs are quite recent in the United States. Thefirst one was offered in March 2008 but was liquidated in October 2008.The actively managed ETFs approved to date are fully transparent,publishing their current securities portfolios on their web sites daily.However, the SEC has indicated that it is willing to consider allowingactively managed ETFs that are not fully transparent in the future.^[4]

The fully transparent nature of existing ETFs means that an activelymanaged ETF is at risk from arbitrage activities by market participantswho might choose to front run its trades^{[citation needed]}.The initial actively traded equity ETFs have addressed this problem bytrading only weekly or monthly. Actively traded debt ETFs, which areless susceptible to front-running, trade their holdings more frequently.^[31]

The initial actively managed ETFs have received a lukewarm responseand have been far less successful at gathering assets than were othernovel ETFs. Among the reasons suggested for the initial lack of marketinterest are the steps required to avoid front-running, the time neededto build performance records, and the failure of actively managed ETFsto give investors new ways to make hard-to-place bets.^[32]

[edit] Exchange-traded grantor trusts

An exchange-traded grantor trust share represents a direct interestin a static basket of stocks selected from a particular industry. Theleading example is Holding Company Depositary Receipts, or HOLDRs, aproprietary Merrill Lynch product. HOLDRs are neither index funds noractively managed; rather, the investor has a direct interest in specificunderlying stocks. While HOLDRs have some qualities in common withETFs, including low costs, low turnover, and tax efficiency, manyobservers consider HOLDRs to be a separate product from ETFs.^{[8] [33]}

[edit] Leveraged ETFs

Leveraged exchange-traded funds (LETFs), or simply leveraged ETFs, are a special type of ETF that attempt to achieve returns that are more sensitive to market movements than non-leveraged ETFs.^[34]Leveraged index ETFs are often marketed as bull or bear funds. Aleveraged bull ETF fund might for example attempt to achieve dailyreturns that are 2x or 3x more pronounced than the Dow Jones Industrial Average or the S&P 500. A leveraged inverse (bear) ETF fund on the other hand may attempt to achieve returns that are -2x or -3x the daily index return, meaning that it will gain double or triple the loss of the market. Leveraged ETFs require the use of financial engineering techniques, including the use of equity swaps, derivatives and rebalancing to achieve the desired return.^[35] The most common way to construct leveraged ETFs is by trading futures contracts.

The rebalancing of leveraged ETFs may have considerable costs when markets are volatile.^[36][37]The problem is that the fund manager incurs trading losses because heneeds to buy when the index goes up and sell when the index goes down inorder to maintain a fixed leverage ratio. A 2.5% daily change in theindex will for example reduce value of a -2x bear fund by about 0.18%per day, which means that about a third of the fund may be wasted intrading losses within a year(0.9982^252=0.63). Investors may howevercircumvent this problem by buying or writing futures directly, acceptinga varying leverage ratio.^[38]

[edit] ETFs compared to mutual funds

[edit] Costs

Because ETFs trade on an exchange, each transaction is generallysubject to a brokerage commission. Commissions depend on the brokerageand which plan is chosen by the customer. For example, a typical flatfee schedule from an online brokerage firm in the United States rangefrom $10 to $20, but can be as low as $0 with discount brokers. Due tothis commission cost, the amount invested has a great bearing; someonewho wishes to invest $100 per month may have a significant percentage oftheir investment destroyed immediately, while for someone making a$200,000 investment, the commission cost may be negligible. Generally,mutual funds obtained directly from the fund company itself do notcharge a brokerage fee. Thus when low or no-cost transactions areavailable, ETFs become very competitive.^[39]

ETFs have a lower expense ratiothan comparable mutual funds. Not only does an ETF have lowershareholder-related expenses, but because it does not have to investcash contributions or fund cash redemptions, an ETF does not have tomaintain a cash reserve for redemptions and saves on brokerage expenses.^[40]Mutual funds can charge 1% to 3%, or more; index fund expense ratiosare generally lower, while ETFs are almost always in the 0.1% to 1%range. Over the long term, these cost differences can compound into anoticeable difference.^[41]

The cost difference is more evident when compared with mutual funds that charge a front-end or back-end loadas ETFs do not have loads at all. The redemption fee and short-termtrading fees are examples of other fees associated with mutual fundsthat do not exist with ETFs. Traders should be cautious if they plan totrade inverse and leveraged ETFs for short periods of time. Closeattention should be paid to transaction costs and daily performancerates as the potential combined compound loss can sometimes gounrecognized and offset potential gains over a longer period of time.^[42]

[edit] Taxation

ETFs are structured for tax efficiency and can be more attractivethan mutual funds. In the U.S., whenever a mutual fund realizes a capital gainthat is not balanced by a realized loss, the mutual fund mustdistribute the capital gains to its shareholders. This can happenwhenever the mutual fund sells portfolio securities, whether toreallocate its investments or to fund shareholder redemptions. Thesegains are taxable to all shareholders, even those who reinvest the gainsdistributions in more shares of the fund. In contrast, ETFs are notredeemed by holders (instead, holders simply sell their ETF shares onthe stock market, as they would a stock, or effect a non-taxableredemption of a creation unit for portfolio securities), so thatinvestors generally only realize capital gains when they sell their ownshares or when the ETF trades to reflect changes in the underlyingindex.^[5]

In most cases, ETFs are more tax-efficient than conventional mutual funds in the same asset classes or categories.^[43]Because Vanguard's ETFs are a share-class of their mutual funds, theydon't get all the tax advantages if there are net redemptions on themutual fund shares.^[44] Although they do not get all the tax advantages, they get an additional advantage from tax loss harvesting any capital losses from net redemptions.^[45][46]

In the U.K., ETFs can be shielded from capital gains tax by placing them in an Individual Savings Account or self-invested personal pension, in the same manner as many other shares.^[47]

[edit] Trading

Perhaps the most important benefit of an ETF is the stock-likefeatures offered. Since ETFs trade on the market, investors can carryout the same types of trades that they can with a stock. For instance,investors can sell short, use a limit order, use a stop-loss order, buy on margin, and invest as much or as little money as they wish (there is no minimum investment requirement).^[48] Also, many ETFs have the capability for options (puts and calls) to be written against them. Covered callstrategies allow investors and traders to potentially increase theirreturns on their ETF purchases by collecting premiums (the proceeds of acall sale or write) on calls written against them. Mutual funds do notoffer those features.^[49]

[edit] Criticism

John C. Bogle, founder of the Vanguard Group, a leading issuer of index mutual funds(and, since Bogle's retirement, of ETFs), has argued that ETFsrepresent short-term speculation, that their trading expenses decreasereturns to investors, and that most ETFs provide insufficientdiversification. He concedes that a broadly diversified ETF that is heldover time can be a good investment.^[50]

ETFs are dependent on the efficacy of the arbitrage mechanism inorder for their share price to track net asset value. While the averagedeviation between the daily closing price and the daily NAV of ETFs thattrack domestic indexes is generally less than 2%, the deviations may bemore significant for ETFs that track certain foreign indexes.^[5] The Wall Street Journalreported in November 2008, during a period of market turbulence, thatsome lightly traded ETFs frequently had deviations of 5% or more,exceeding 10% in a handful of cases, although even for these niche ETFs,the average deviation was only a little more than 1%. The trades withthe greatest deviations tended to be made immediately after the marketopened.^[51]

According to a study on ETF returns in 2009 by Morgan Stanley, ETFsmissed in 2009 their targets by an average of 1.25 percentage points, agap more than twice as wide as the 0.52-percentage-point average theyposted in 2008.^[52] Part of this so-called tracking erroris attributed to the proliferation of ETFs targeting exotic investmentsor areas where trading is less frequent, such as emerging-marketstocks, future-contracts based commodity indices and junk bonds.^{[citation needed]}

The tax advantages of ETFs are of no relevance for investorsusing tax-deferred accounts (or indeed, investors who are tax-exempt inthe first place).^[53] However, the lower expense ratios are proving difficult for the proponents of traditional mutual funds to overcome.

In a survey of investment professionals, the most frequently citeddisadvantage of ETFs was the unknown, untested indexes used by manyETFs, followed by the overwhelming number of choices.^[3]

Some critics claim that ETFs can be, and have been, used to manipulate market prices, including having been used for short selling that has been asserted by some observers (including Jim Cramer of theStreet.com) to have contributed to the market collapse of 2008.^[54][55][56]

[edit] Issuers of ETFs

• Bips Investment Managers issues Bips (Beta Investment Performance Securities).
• BNP Paribas issues EasyETFs.
• BlackRock issues iShares.
• Charles Schwab offers several commission-free ETFs for its clients.
• Deutsche Bank issues db x-trackers ETFs, as well as managing PowerShares DB commodity- and currency-based ETFs.
• ETF Securities issues ETFs or specialised commodity ETCs.
• Global X Funds issues ETFs.
• Guggenheim Funds issues specialty Guggenheim Funds ETFs.
• Invesco issues PowerShares ETFs, as well as BLDRS based on American Depositary Receipts.
• Lyxor Asset Management issues Lyxor ETFs.
• Merrill Lynch issues HOLDRs.
• Source UK Services, a European joint-venture between Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley, Nomura and J. P. Morgan issues ETFs and ETCs
• State Street Global Advisors issues SPDRs.
• Van Eck Global issues Market Vectors ETFs.
• Vanguard Group issues Vanguard ETFs, formerly known as VIPERs.

[edit] See also

• Collective investment scheme
• Enhanced indexing
• Exchange-traded note
• Investment trust
• Pension fund
• Separately managed account

[edit] References

1. ^ "Introduction To Exchange-Traded Funds ", Investopedia,
2. ^ State Street Global Advisors and Knowledge@Wharton, ETFs Changing the Way Advisors Do Business, According to State Street and Wharton Study, Business Wire (June 10, 2008).
3. ^ ^{a b} The Impact of Exchange Traded Products on the Financial Advisory Industry: A Joint Study of State Street Global Advisors and Knowledge@Wharton (2008).
4. ^ ^{a b c d e f g h} Exchange-Traded Funds, SEC Release Nos. 33-8901, IC-28193, 73 Fed. Reg. 14618 (March 11, 2008).
5. ^ ^{a b c d e} Actively Managed Exchange-Traded Funds, SEC Release No. IC-25258, 66 Fed. Reg. 57614 (November 8, 2001).
6. ^ PowerShares Capital Management LLC, et al.; Notice of Application, Release No. IC-28140 (February 1, 2008), 73 Fed. Reg. 7328 (February 7, 2008) (notice); PowerShares Capital Management LLC, Release No. IC-28171 (February 27, 2008) (order). The SEC issued orders to Bear Stearns Asset Management, Inc., Barclays Global Fund Advisors, and WisdomTree Trust on the same day.
7. ^ American Stock Exchange Lists First Actively-Managed Exchange Traded Fund (March 25, 2008).
8. ^ ^{a b c} ETFConnect, "Index ETFs – Know Your Funds" (visited April 7, 2008).
9. ^ Peaceful Gains. "A List of exchange-traded funds". http://etf.peacefulgains.com/A-List-of-exchange-traded-funds/. Retrieved October 23, 2009. 
10. ^ ^{a b} Gastineau, Gary (2002). The Exchange-Traded Funds Manual. John Wiley and Sons. pp. 32. ISBN 978-0471218944. http://books.google.com/books?id=CIYoyIrP6cIC. 
11. ^ Carrel, Lawrence (2008), ETFs for the Long Run, John Wiley & Sons, ISBN 978-0-470-13894-6
12. ^ Jennifer Bayot (December 10, 2004). "Nathan Most Is Dead at 90; Investment Fund Innovator". New York Times. http://www.nytimes.com/2004/12/10/obituaries/10most.html. Retrieved April 23, 2008. 
13. ^ Wiandt, Jim; William McClatchy (2002). Exchange Traded Funds. John Wiley and Sons. pp. 82. ISBN 0471225134. 
14. ^ Fabozzi, Frank (2003). The Handbook of Financial Instruments. John Wiley and Sons. pp. 532. ISBN 0471220922. http://books.google.com/books?id=F1hk6UFlsUsC. 
15. ^ Ferri, Richard A. (2008). The ETF Book, John Wiley and Sons, 191 ISBN 0470130636.
16. ^ http://www.ici.org/research/stats/etf/etfs_09_10 Investment Company Institute, Exchange-Traded Fund Assets September 2010
17. ^ American Stock Exchange, ETFs – Individual Investor (visited April 7, 2008).
18. ^ The Case Against Leveraged ETFs, Seeking Alpha (May 17, 2007).
19. ^ Investment Company Institute, Exchange-Traded Fund Assets February 2008 (March 28, 2008).
20. ^ "Largest ETFs: Top 25 ETFs By Market Cap". ETFdb. http://etfdb.com/compare/market-cap/. Retrieved 2010-11-03. 
21. ^ Our Take on the Bond ETF Dilemma
22. ^ Stacy L. Fuller, The Evolution of Actively Managed Exchange-Traded Funds, Review of Securities & Commodities Regulation (April 16, 2008).
23. ^ Benchmark Asset Management Company conceptualises Gold ETF
24. ^ "Largest ETFs: Top 25 ETFs By Market Cap". ETFdb. http://etfdb.com/compare/market-cap/. Retrieved 2010-11-03. 
25. ^ Michael Sackheim, Michael Schmidtberger & James Munsell, DB Commodity Index Tracking Fund: An Innovative Exchange-Traded Fund, Futures Industry (May/June 2006).
26. ^ No Gas: Barclays Halts Issuance of Natural Gas ETN
27. ^ Gold Mutual Funds Vs. Gold ETFs: It Depends on the Goal
28. ^ The Future of Commodity ETFs
29. ^ Indicators for Trading in Government Bond ETFs
30. ^ Bond ETFs: A Viable Alternative
31. ^ David Hoffman, Active ETFs are, well, less active; Dynamics of trading translate into little active management, Investment News (April 21, 2000).
32. ^ Ian Salisbury, 'Active' ETFs Get a Passive Response, Wall Street Journal (May 22, 2008).
33. ^ Palash R. Ghosh (August 18, 2005). "HOLDRs Vs. ETFs: What Investors Should Know". Investment Advisor. Summit Business Media. http://www.advisorone.com/article/holdrs-vs-etfs-what-investors-should-know. Retrieved January 8, 2011. 
34. ^ http://www.marketwatch.com/News/Story/Story.aspx?guid={39F0677C-F099-4A5E-9EA0-132B1260BE8F}
35. ^ http://esignal.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?SessionID=vAvuWLEuuiIQIH0&ID=4751031
36. ^ http://olympiainv.com/Memos/ETFs.pdf
37. ^ Fidelity the Latest to Caution on ETFs
38. ^ Short and Leveraged ETFs - 3 Pitfalls You Shouldn't Ignore on www.morningstar.com
39. ^ Fidelity Offers iShares ETFs Commission-Free on news.morningstar.com
40. ^ John M. Baker, Creation Units and the Rise of Exchange-Traded Funds, Investment Adviser (July 2000).
41. ^ Mutual Fund Fees Jump 5 Percent on moneywatch.bnet.com
42. ^ Tristan Yates: What Can we Learn from the 2008 Leveraged ETF Collapse?
43. ^ Dan Culloton, Are ETFs Really More Tax-Efficient Than Mutual Funds? Morningstar (February 14, 2006).
44. ^ The Problem With Vanguard VIPERs ETFs (2009-12-29).
45. ^ Vanguard ETFs have Different Tax Considerations Than Other ETFs (2009-12-29).
46. ^ ETF Tax Efficiency (2009-12-29).
47. ^ Tim Bennett, Exchange traded funds: profit from the City's best-kept secret, MoneyWeek (February 15, 2008).
48. ^ Gastineau, Gary (2002). The Exchange-Traded Funds Manual. John Wiley and Sons. pp. 227. ISBN 978-0471218944. http://books.google.com/books?id=CIYoyIrP6cIC. 
49. ^ Larry Connors, "Trading Covered Calls with ETFs", Tradingmarkets (March 4, 2008).
50. ^ John C. Bogle, 'Value' Strategies, Wall Street Journal (February 9, 2007).
51. ^ Ian Salisbury, Some ETFs Fall Short on Pricing; Certain Trades Slip Below Value of Holdings, Wall Street Journal (November 21, 2008).
52. ^ ETFs Were Wider Off the Mark in 2009, Wall Street Journal (February 19, 2010).
53. ^ Wilfred Dellva, Exchange-Traded Funds Not for Everyone, Journal of Financial Planning (April 2001).
54. ^ Stephen Kovaka, Just Say No to the Silver ETF, SilverSeek.com (27 April 2007)
55. ^ Theodore Butler, The Smoking Gun, SilverSeek.com (22 August 2008)
56. ^ Mark O'Byrne, Why the silver price is set to soar, MoneyWeek (August 09, 2007)

[edit] Further reading

• Carrell, Lawrence. ETFs for the Long Run: What They Are, How They Work, and Simple Strategies for Successful Long-Term Investing. JW Wiley, 2008. ISBN 978-0-470-13894-6
• Ferri, Richard A. The ETF Book: All You Need to Know About Exchange-Traded Funds. Wiley, 2009. ISBN 0470537469
• Humphries, William. Leveraged ETFs: The Trojan Horse Has Passed the Margin-Rule Gates. 34 Seattle U.L. Rev. 299 (2010), available at [1].
• Koesterich, Russ. The ETF Strategist: Balancing Risk and Reward for Superior Returns. Portfolio, 2008. ISBN 978-1-59184-207-1

[edit] External links

• Exchange Traded Funds (ETF) London Stock Exchange (LSE)
• Exchange Traded Funds (ETFs) & Index Funds NASDAQ Stock Market
• Exchange Traded Products New York Stock Exchange
• Exchange Traded Funds (ETF) Toronto Stock Exchange (TSX)
• Exchange Traded Funds (ETF) Australian Stock Exchange (ASX)
• Exchange Traded Funds (ETFs) listed on XETRA or on Nasdaq OMX Nordic ETFSverige.se information web site
• Using ETFs in investment portfolios – Exchange Traded Fund Basics, Investor Knowledge Centre (Vanguard Investments Australia)
• Benefits of ETFs Australian ETF Information Network
• Cross-referenced list of funds U.S., Canadian and U.K. ETFs organized by industry, region and investment strategy.