The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. On the other hand, while ETNs also trade like stocks, they’re more similar to corporate bonds in that they’re calvenridge trust review debt issued by a financial institution and subject to the credit risk of that issuer. Unlike a mutual fund or ETF, an ETN has no underlying portfolio of assets. Index performance returns do not reflect any management fees or expenses. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes.
Asset Class
These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries. Most ETPs are designed to track the performance of an underlying index; however, sometimes their performance may diverge. So-called “tracking error” occurs when the returns of the ETP deviate from the returns of its underlying benchmark, which can impact investor performance (either negatively or positively). An ETP’s price also might diverge significantly from the underlying value of its portfolio if, for example, there’s a disruption in the share redemption or creation process. FINRA provides an easy-to-use, online Fund Analyzer that allows you to compare expenses among ETPs. Using a live data feed that captures expense information for thousands of products, the analyzer can help you understand the impact fees and expenses have on your investment over time.
None of these companies make any representation regarding the advisability of investing in the Funds. With the exception of BlackRock Index Services, LLC, who is an affiliate, BlackRock Investments, LLC is not affiliated with the companies listed above. ETPs can be owned in a number of different types of accounts, such as tax-advantaged accounts, like retirement accounts, or brokerage accounts. And affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation (“BofA Corp.”).
INVESTMENT OBJECTIVE
ETPs can also be sold short, purchased on margin or have options contracts written on them. And, like mutual funds, they track an underlying index or asset or might reflect an actively managed strategy. Invesco is an independent investment management company built to help individual investors, financial professionals, and institutions achieve their financial goals. We offer a range of investment strategies across asset classes, investment styles, and geographies. Our asset management capabilities include mutual funds, ETFs, SMAs, model portfolios, indexing and insurance solutions, and more.
- Invesco is an independent investment management company built to help individual investors, financial professionals, and institutions achieve their financial goals.
- In addition to leveraged and inverse products, many single-stock ETFs offer geared exposure but to individual stocks.
- Amounts are rounded to the nearest basis point, which in some cases may be “0.00”.
- In general, though, an ETP is a security that’s listed on a U.S. exchange and seeks to provide exposure to the performance of a benchmark (such as the price of gold), an index (such as the S&P 500) or an actively managed strategy.
- COWS includes a fee waiver and as such shows both subsidized and unsubsidized yields.
Exposure Breakdowns
1Gross expenses reflect fees incurred by the Fund before waivers and reimbursements, including but not limited to management fees, 12b-1 fees, and acquired fund fees and expenses. 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. This figure reflects the income earned from dividends – excluding option income – during the period after deducting the Fund’s expenses for the period.
You’ll have to pay taxes on any realized capital gains when you do ultimately sell, however, and are also responsible for reporting any dividend and interest payments you receive from ETPs. Investors purchasing or selling ETNs or shares of an ETP through an investment professional typically pay a brokerage commission on each transaction, as with purchases of individual stocks. Depending upon your level of trading, the sales charges you pay for each purchase or sale could erode your investment return.
Since Inception returns are provided for funds with less than 10 years of history and are as of the fund’s inception date. 10 year returns are provided for funds with greater than 10 years of history. Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid. The Distribution Rate is computed as the normalized current distribution (annualized) over NAV per share.