ETF Basics
This type of fund trades on an exchange like a stock and typically tracks an index.
What are exchange-traded funds (ETFs)?
These ETFs invest primarily in stocks.
What are equity-based ETFs?
This process allows large investors to swap a basket of securities for ETF units without using cash.
What is an in-kind exchange?
This measures the total volatility of an investment, without comparing it to any benchmark.
What is absolute risk?
These strategies bet on anticipated movements in the market prices of equity securities, debt securities, foreign currencies, and commodities.
What is directional Strategy
This document gives investors a quick summary of an ETF, including fees, risks, and performance.
What is ETF Facts?
These ETFs focus on raw materials like gold, oil, or agriculture.
What are commodity ETFs?
This is the large block of ETF units used in creation and redemption by institutions.
What is a prescribed number of units?
This term describes how “fat” the tails of a return distribution are compared to normal.
What is kurtosis?
These strategies seek to profit from unique corporate structure events such as mergers, acquisitions, stock splits, and stock buybacks
What is Event-driven strategies?
These ETFs aim to match an index by holding all the securities in that index
What is full replication?
These ETFs attempt to deliver the opposite return of an index.
What are inverse ETFs?
This key participant helps keep ETF prices in line with their underlying value.
What is a designated broker?
This measures whether returns are more likely to have extreme negative or positive outcomes.
What is skew?
This strategy attempt to profit by exploiting inefficiencies or differences in the pricing of related stocks, bonds, or derivatives.
What is Relative value strategies?
Instead of holding all securities, this method uses a representative subset to track an index
What is sampling?
These ETFs use borrowing or derivatives to amplify returns, often 2x or 3x.
What are leveraged ETFs?
These are smaller, higher-risk investments added to enhance returns.
what are satellite holdings?
This is the largest peak-to-trough loss an investment experiences over a period.
What is maximum drawdown?
This strategy is designed to exploit inefficiencies and opportunities in the equity market by creating simultaneously long and short matched equity portfolios of approximately the same size.
What is an equity market-neutral strategy?