November 08, 2011 at 09:00 AM EST
ETF Misnomers: Why You Never Judge A Fund By Its Cover
The saying “never judge a book by its cover” is certainly applicable to a wide range of situations. That includes the business of investing; for advisors and individuals who use ETFs, the old adage can be very relevant, valuable advice. There are now more than 1,300 exchange-traded products now available to U.S. investors, and that number will only climb higher in coming months and years. For the vast majority of those funds, the product name provides a pretty good description of the underlying assets and investment objectives. The S&P 500 SPDR (SPY) invests in the stocks of the S&P 500 Index. The Gold SPDR (GLD) invests in gold bars [see also 25 Things Every Financial Advisor Should Know About ETFs]. But in some cases the name of an ETF only tells a part of the story, and a look under the hood can reveal that the actual exposure achieved can [...] Click here to read the original article on ETFdb.com. Related Posts: Van Eck Launches Small Cap Germany ETF (GERJ) 25 Things Every Financial Advisor Should Know About ETFs Alternatives To The 20 Most Popular ETFs Ten Commandments Of ETF Investing IndexIQ Launches Small Cap Taiwan ETF (TWON)
The saying “never judge a book by its cover” is certainly applicable to a wide range of situations. That includes the business of investing; for advisors and individuals who use ETFs, the old adage can be very relevant, valuable advice. There are now more than 1,300 exchange-traded products now available to U.S. investors, and that number will only climb higher in coming months and years. For the vast majority of those funds, the product name provides a pretty good description of the underlying assets and investment objectives. The S&P 500 SPDR (SPY) invests in the stocks of the S&P 500 Index. The Gold SPDR (GLD) invests in gold bars [see also 25 Things Every Financial Advisor Should Know About ETFs]. But in some cases the name of an ETF only tells a part of the story, and a look under the hood can reveal that the actual exposure achieved can [...]

Click here to read the original article on ETFdb.com.

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