Exchange Traded Funds
Additional Risk Warnings
Exchange Traded Funds (ETFs) are investment funds, similar to unit trusts and OEICs but they are traded analogous shares and may not be suitable for everyone. You should consider the pastime information before making an investment: 1 well-nigh ETFs are not based in the UK and most of the protections provided by the UK regulatory system do not apply. In particular, in the event of default, compensation will not be getable from the Financial Services Compensation Scheme. We will only tornado to deal in an ETF if it has been registered with the FSA as a recognised offshore scheme by the provider. 2 ETFs closely track the deed of an index and as such their value can go down as well as up and you may get back less than you invested. Also, past performance is not a reliable indicator to future performance. 3 You should immortalise the Simpli?ed Prospectus and / or the full prospectus cautiously to ensure that you fully understand the ETF you are intending to purchase. These documents can be obtained from the ETF providers own website or by vocation our Dealing team on 01296 41 42 43.
4 Whilst most ETFs achieve their objectives by purchasing a diversi?ed pool of assets, some achieve their objectives through the use of derivatives, typically swaps, which carry counterparty risk. If the counterparty does not pay the sums due, the investor will see a reduced return regardless of the performance of the underlying assets. The Simpli?ed Prospectus will detail how the ETF aims to meet its investment objectives. 5 Most ETFs are intended to be medium to dour term investments.
6 The value of an ETF may be moved(p) by market values, interest rates, exchange rates, volatility, dividend yields and issuer credit ratings. These factors are interrelated in complex ways, and as a result, the instal of any one factor may be process or magni?ed by the effect of another factor. 7 You should ensure that the ETF meets your own...If you want to get a full essay, dictate it on our website: Orderessay
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