Since exchange-traded funds (ETFs) leapt onto the scene in the early 1990s, their growing popularity has led to a proliferation of different types of products and at least six different exchange-traded structures, each of which can behave differently in given market conditions.
“Investor interest in the various types of exchange-traded instruments continues to increase,” says Tony Arnerich, CEO and CIO of Arnerich Massena, “but tracking the different structures and anatomies of each ‘species’ can be confusing, and requires in-depth analysis.”
In the paper, Tony Arnerich, Scott Dunbar and Jillian Perkins investigate the different ‘species’ of exchange-traded products: how they’re constructed, their risks, and how they fit into a diversified portfolio.
The paper explores:
- Exchange-traded funds (ETFs);
- Exchange-traded notes (ETNs);
- Exchange-traded certificates (ETCs);
- Limited partnership (LP) ETFs;
- Master limited partnerships (MLPs) ETFs and ETNs; and
- Unit investment trusts (UITs).