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AUGUST 24TH, 2018

The Facts about ETF Facts

Beginning December 10, 2018, investors purchasing exchange-traded funds (ETF) will receive a user-friendly document that provides a snapshot of important information about their investment. They are entitled to receive a copy of these summaries within two days of their purchase.

Similar to the Fund Facts document for mutual funds, the ETF Facts discloses key information like:

  • The fund and portfolio managers
  • Top 10 investments
  • Investment mix
  • Risk rating
  • Year-by-year returns
  • Fees and expenses

But unlike mutual funds, exchange-traded funds are bought and sold on a stock exchange. Investors are provided with additional information including the exchange where the ETF is listed, an explanation about how pricing works for these securities and how the price may differ from the underlying net asset value.

To learn more, check out this interactive sample of an ETF Facts document on the Get Smarter About Money website created by the Ontario Securities Commission.

You can also enroll in IFSE’s Exchange-Traded Funds Course to gain a better understanding of these products.