The first exchange-traded fund (ETF) was launched in Canada over 30 years ago. Since then, ETFs have thrived, largely due to their ability to adapt and innovate during times of significant volatility. In this report—A primer on ETFs—we discuss:
- How ETFs work, including their advantages and inherent risks
- Key similarities and differences between ETFs and mutual funds
- The three-way partnership that is central to the creation and redemption of ETFs
- What the future holds as managers continue to push ETFs beyond the "plain-vanilla" approach
"ETFs are one of the most popular—and disruptive—investment phenomena to have emerged in recent years."
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