ETFs - Spring 2017  

Guide to exchange-traded funds

  • To learn about the growth of ETFs.
  • To understand different types of ETF and how they fit into a portfolio.
  • To ascertain what developments might be expected.
CPD
Approx.60min
Guide to exchange-traded funds

Introduction

By Laura Miller

Exchange-traded funds (ETFs) have seen phenomenal growth over the past decade, from what was primarily perceived as a US institutional investor's product to a popular, low-cost choice for retail investors the world over.

Product range, too, has grown, with exchange-traded products based on commodities, smart-beta strategies and sector-specific indices created especially for exchange-traded products to track.

This guide will explore why the market has taken off, the differences between index funds, exchange-traded funds and smart beta, how ETFs can be used in portfolio construction and what sort of developments are on the horizon.

Contributors include: James McManus, investment manager for Nutmeg; Joe Parkin, head of UK wealth and retail sales for iShares; Bryon Lake, head of Invesco Powershares; Pollyanna Mills, head of UK intermediary sales at iShares; Luis Rivera, chief executive of ETFMatic; Mark Fitzgerald, product manager at Vanguard; and Daniel Greenhough, investment manager for Lumin Wealth.

laura.miller@ft.com

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Mr McManus, where has the focus of much of the ETF growth been?

  2. Mr Greenhough thinks the amount of time spent on due diligence and ongoing monitoring is less for ETFs than for active managers. True or false?

  3. Ms Mills believes ETFs and index funds both deliver what to investors?

  4. How does Mr Rivera feel about the rise of smart beta?

  5. What weighs on the view of Mr Greenhough when it comes to smart beta ETFs?

  6. What does Mr Parkin predict investors will be doing as they demand both value and a premium service?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To learn about the growth of ETFs.
  • To understand different types of ETF and how they fit into a portfolio.
  • To ascertain what developments might be expected.

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