Date: August 14, 2017
Exchange Traded Funds (ETFs) are often described as instruments that give investors the benefits of diversification at a low cost. While this may be attractive, it is important to know that ETFs, being investment products, are not free from risk elements.
It is also important to know that not all ETFs have the same structure and level of complexity. Some ETFs come with more complex structures, and may not invest directly in the assets or components of the indices that the ETFs track. Depending on the structure of the ETF, some ETFs are not able to replicate the returns of the underlying asset or index as closely as others, and some ETFs may be exposed to more risks than others.
This Guide aims to help you understand what ETFs are and what you should consider before investing in them. It highlights the benefits and risks of investing in ETFs, what you should look out for in the prospectus and other important information.