Fourteen exchange-traded fund providers have created a website to educate investors and financial advisors about the intricacies of investing in ETF's, the Investment Company Institute said today.
The website, www.understandETFs.org, is designed to enhance public understanding of ETF's, which are growing as an investment option. The site contains educational resources for ETF investors and a question-and-answer section designed to help investors understand basic ETF investing. It also includes links to other resources.
"As the ETF committee (of ICI) met to discuss industry issues, an opportunity for our firms to come together to help investors better understand our products--which are considered to be one of the most significant investing innovations that exist today--became clear," said Jim Ross, ETF committee chair and global head of SPDR ETFs and head of intermediary distribution at State Street Global Advisors.
"Business models and competition aside, this new website educates investors using the ETF industry's collective thinking," he said. "We hope that investors, advisors and other market participants find it a useful tool."
The site will supplement any educational efforts each of the 14 ETF providers conduct on their own. A number of the ETF firms are considering ways to highlight the language in various shareholder communications and outreach in their individual efforts, ICI said.
ETFs account for $1.2 trillion of the nation's investment assets and represent a growing category of funds.
"All of us have a stake in ensuring investors have the knowledge and know-how they need to invest in ETFs with confidence to achieve their financial goals," said Michael Sapir, CEO of ProShare Advisors LLC.
The firms involved in the webstie comprise Advisor Shares Investments LLC, Charles Schwab Investment Management, Columbia Management, db-X ETFs, First Trust Portfolios LP, FlexShares, Guggenheim Investments, Invesco PowerShares, iShares, Pacific Investment Management Company LLC (Pimco), ProShares, State Street Global Advisors, Market Vectors and Vanguard.
--Karen DeMasters