The ETF Phenomena

February 1, 2016

In a recent article in South Florida Business & Wealth, WE’s Julie Neitzel discusses new tools for global investors. Over the past 20 years, technology has changed the way we live, providing modern conveniences such as cell phones, email, and the Internet. Similarly, the financial services sector has introduced innovative products that have changed the investment landscape as we once knew it.

Exchange-traded funds, or ETFs, are investment vehicles for holding securities that are passively managed and commonly owned by institutional, individual and hedge fund investors. This sector has experienced impressive growth in recent years, and ETF assets will likely surpass the $2.24 trillion hedge fund industry in the near future. Why the surge in popularity? ETFs are low cost, tax efficient, liquid and transparent in terms of underlying holdings. They also offer low investment minimums and efficiency in getting exposure to certain segments for a diversified investment portfolio.

Despite their appeal, not all ETFs are the same; today, there are over 1,600 ETFs providing different market exposures and risks. As with any investment vehicle, ETFs should be managed by an experienced professional who understands inherent investment risks.

To learn more about ETFs, click here.

Disclosure

This communication contains our current opinions and commentary, and does not represent a recommendation of any particular security, strategy, investment product or manager. The views expressed here are subject to change without notice. This commentary is distributed for educational purposes only and should not be considered as investment advice or an offer of any security or service for sale. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. No part of this letter may be reproduced in any form, or referred to in any other publication, without WE’s written permission.