Liz Tammaro: So we received a number of concerns ahead of time once you all registered because of this webcast. We are going to get started doing our very first concern and, Jim, i will give that one to you personally. Before we get started, let’s define what is an ETF so it makes a lot of sense.
Jim Rowley: to put it simply, an ETF is definitely an exchange-traded fund, right? It really is a pooled investment car that acquires or gets rid of securities. Investors acquire a pro rata share for the assets in that fund. The investment dilemmas new stocks or redeems existing stocks to meet up investor need.
Also, and I also should state supplying some form of a good investment exposure to those advisors, whether it is an index in specific or an industry strategy. So when you see a lot more what exactly makes them much like shared funds is almost all of ETFs are arranged and regulated as investment businesses underneath the Investment business Act of 1940. And that’s exactly the same regime that is regulatory which shared funds operate. Therefore for the conversations often we read about differences when considering shared funds and ETFs, they may be overwhelmingly comparable really.
Liz Tammaro: as well as thinking about this, we could speak about maybe exactly what are a few of the great things about the shared investment versus an ETF or, sorry, even the other way around, ETF versus fund that is mutual. And also perhaps what exactly are a number of the disadvantages.
Jim Rowley: we’ll simply simply take that because i do believe I do not always just like the term drawback. I believe distinctions is perhaps the greater amount of term that is appropriate. And now we simply addressed a number of the similarities between ETFs and shared funds, so it is perhaps more important to understand just what will be the real differences. And extremely the differences come down seriously to two items that are major they both relate genuinely to exactly exactly how investors transact in stocks of the funds, appropriate? Continue reading