17.05.2016 - Why the ETF acronym can be misleading
Sometimes an ETF isn’t exactly an ETF. As investors, the media and regulators put more focus on exchange-traded funds, it’s worth asking what exactly an ETF is. The term was coined back in 1996 by Morgan Stanley, which needed a generic name to put into the prospectus for its new World Equity Benchmark Series (WEBS) products, which years later became iShares. Until 1996, that really was just the SPDR S&P 500 Trust (SPY). Little did the bank know how quickly the ETF acronym would catch on, eventually growing to include an eclectic group of products – some of which aren’t technically funds and don’t always trade on an exchange, if they trade at all. Here’s a breakdown of an acronym that can, at times, be a bit misleading...............................................Full Article: Source
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