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 Exchange Traded Funds (ETFs) 

Exchanges Traded Funds (“ETFs”) represent a basket of securities that are traded on an exchange. They are similar to index mutual funds but trade like a stock.

Similar to index funds ETFs track the performance of a particular index, such as the S & P 500 known as the “spider”, or different sectors, geographic regions, countries and investment styles. Other ETFs track different sectors of the bond market as well as different commodities.

Advantages of ETFs include:

  • Lower expenses than traditional funds
  • More tax-efficient than mutual funds
  • Can be bought / sold throughout trading day

Because of the expenses of commissions, ETFs may not be appropriate for small investments, including monthly systematic programs, and some non-taxable accounts.

Contact a Financial Consultant to learn more

Equity-based exchange traded funds are subject to risks similar to those of stocks, fixed income-based ETFs are subject to risks similar to those of bonds. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Foreign investments have unique and greater risks than domestic investments. Past performance is no guarantee of future results.

Exchange traded funds are offered with a prospectus. Investors should consider the investment objectives, risks and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You can obtain a prospectus from your financial representative. Read the prospectus carefully before investing.


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© 2010 IBC Investment Services. All Rights Reserved

Securities and Insurance products offered through LPL Financial and its affiliates, Member FINRA / SIPC. International Bank of Commerce is not a registered broker dealer and is not affiliated with LPL Financial.

NOT A DEPOSIT | NOT FDIC-INSURED | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | NOT GUARANTEED BY BANK | MAY LOSE VALUE

This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. registered representatives. LPL Financial Services’ U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.