Exchange Traded Funds (ETF) Risk Disclosure
Last Updated: January 9, 2020
Investors should consider the investment objectives and unique risk profile of Exchange-Traded Funds (ETFs) carefully before investing. ETFs are subject to risks similar to those of other diversified portfolios. Leveraged and Inverse ETFs may not be suitable for all investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. ETF trading will also generate tax consequences.
Although ETFs are designed to provide investment results that correspond to the performance of their respective underlying indices, they may not be able to exactly replicate the performance of the indices because of expenses and other factors. A prospectus contains this and other information about the ETF and should be read carefully before investing. Customers can obtain prospectuses from the website of the issuer of the ETF.
ETFs are required to distribute portfolio gains to shareholders at year end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. Additional regulatory guidance on Exchange Traded Products can be found at the SEC website and at the FINRA website.
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