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Types of ETFs/ETPs

  • Exchange-Traded Funds
  • Exchange-Traded Products

Overview

In this course you’ll learn about the different types of ETPs available as investment choices. With a better understanding of the types of ETPs available you can make a well informed decision about which types may be right for your portfolio.

Objectives

When you complete this course, you will:

  • Be familiar with the key terms and concepts of different types of ETPs
  • Know the potential benefits and risks of investing in inverse, leveraged and narrowly based ETPs
  • Understand if ETP investments may be right for your portfolio
Course Outline
Title Type Highlight
1. Index ETFs Article
In this section, Why Should I Consider an Index ETF, investors will learn about some of the advantages associated with investing in ETFs. This section underscores the importance of assessing fees, liquidity and tracking error when making index ETF selections.
In this section, Why Should I Consider an Index ETF, investors will learn about some of the...
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2. Bond ETFs Article
Pay special attention to the Interest Rate and Credit Risk section of this lesson. Too often investors reach for the higher yield without understanding the risks involved.
Pay special attention to the Interest Rate and Credit Risk section of this lesson. Too often...
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3. Commodity-Based ETFs Article
This lesson covers various ways a commodity, like gold, can be tracked using different investments. In order to make the best choice to fit your portfolio, you have to know how the ETF attempts to replicate exposure.
This lesson covers various ways a commodity, like gold, can be tracked using different investments....
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4. International ETFs Article
Pay special attention to the "Single-country promise and pitfalls" section in this lesson. When considering any investment you must weigh the potential risks and rewards.
Pay special attention to the "Single-country promise and pitfalls" section in this lesson. When...
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5. Foreign currency ETFs Article
Take note of the "What moves currencies" section of this lesson. You may find a few unexpected factors to consider.
Take note of the "What moves currencies" section of this lesson. You may find a few unexpected...
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6. Inverse ETFs Article
You can trade and access liquidity using inverse ETFs in the same manner as any other ETF. These types of ETFs may be one way to achieve downside market protection in accounts that typically cannot achieve that type of access.
You can trade and access liquidity using inverse ETFs in the same manner as any other ETF. These...
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7. Leveraged ETFs Article
When trading leveraged ETFs investors may make some uninformed assumptions. Pay special attention to the "what does leverage mean" section of this lesson.
When trading leveraged ETFs investors may make some uninformed assumptions. Pay special attention to...
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8. Actively managed ETFs Article
The underlying concept behind an actively managed ETF is that the portfolio manager will be able to adjust the portfolio as needed or desired while not being subject to the set rules of an index.
The underlying concept behind an actively managed ETF is that the portfolio manager will be able to...
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9. Exchange Traded Notes Article
ETFs are subject to market risk, whereas ETNs are subject to both market risk and the credit risk of the investment bank issuing the ETN.
ETFs are subject to market risk, whereas ETNs are subject to both market risk and the credit risk of...
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ETF volume analysis

  • By David Vomund,
  • Active Trader Magazine

Sector and industry ETFs

  • WILEY GLOBAL FINANCE

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.

Exchange traded products (ETPs) are subject to market volatility and the risks of their underlying securities which may include the risks associated with investing in smaller companies, foreign securities, commodities and fixed income investments. Foreign securities are subject to interest rate, currency-exchange rate, economic and political risk all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector are generally subject to greater market volatility as well as the specific risks associated with that sector, region or other focus. ETPs which use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index it tracks because of fees, expenses and tracking error. An ETP may trade at a premium or discount to its Net Asset Value (NAV) (or indicative value in the case of ETNs). Each ETP has a unique risk profile which is detailed in its prospectus, offering circular or similar material, which should be considered carefully when making investment decisions.

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