Exchange Traded Funds

See how ETFs may be right for your portfolio

ETFs are a basket of individual securities designed to provide a diversified portfolio that isn't dependent on one or two investments. A diversified portfolio is spread over a wide range of investments to help reduce volatility and promote stability.

Read why industry leader Barclays Global Investors think ETFs are some of the fastest-growing investment vehicles in the market today. Read article now. Read article now.

Before investing in an ETF, carefully consider the investing objectives, risks, charges and expenses. For a prospectus containing this and other important information, contact a Client Services representative at 800-669-3900. Please read the prospectus carefully before investing.

Efficient index investing

ETFs are designed to track the performance of a specific index, class or sector. The financial theory — index investing — states that over time, a composite index representing an asset class or sector should generally perform better than individually selected securities in that asset class or sector.

Easy asset allocation

With ETFs, your portfolio can easily target specific asset classes and subclasses and track established indexes, allowing you to easily allocate your investments more effectively. And with ETFs, allocating your your portfolio doesn't take a lot of your time.

Simple diversification

Diversification means having your investments spread around. Since ETFs are composed of many underlying securities from a variety of sectors and indexes, investing in ETFs is a simple and efficient way to diversify the investments in your portfolio and help manage risk.

Low expense ratios

ETFs typically have low expense ratios. Low expense ratios mean less is deducted from your potential returns. Ordinary brokerage commissions apply.

Tax efficiency

Since investors buy and sell ETFs on an exchange, securities don't have to be sold by the fund in order to return investor's principal (a redemption), which creates fewer capital gains — and possible tax benefits. However, the sale of an ETF generates capital gain/loss exposure for the investor liquidating shares, just as with a stock.

Flexibility

ETFs are traded like stocks throughout the trading day on an exchange, which allows additional flexibility in rebalancing a portfolio and increasing or decreasing exposure to a specific sector.