“It’s not in plain English,” she said. “It should be understandable, instead of being in language that covers the firm legally.”
State Street Corp., the second-biggest ETF provider, works hard to provide a range of education material to investors directly and to make sure advisers are properly informed, Scott Ebner, global head of ETF product development, said in an interview. He said some responsibility also lies with investors.
“There’s a lot of information out there about the risks of premiums and discounts, and about the risks and opportunities associated with trading in the second market,” he said. “They still have to do the work to understand how it works, how it fits into their portfolio and with their risk preferences.”