An In-Depth Look At Defined Maturity ETFs:
This 12-page white paper provides an in-depth look at defined maturity ETFs including the growth and usage of fixed-income ETFs, how defined maturity ETFs can be used to obtain targeted exposure to specific points on the yield curve, how they compare to alternative investment vehicles, as well as various implementation strategies for the funds within a portfolio. Investors will walk away with an understanding of how defined maturity ETFs can provide a convenient and cost-effective way to complement and supplement other fixed income holdings, how they can be used to build a bond ladder and how the maturity process works.
"ETFs vs. Mutual Funds: The True Cost of Investing" White Paper1
The reflexive perception that ETFs cost less, simply based on their low expense ratios, and are more cost -effective than mutual funds, is not entirely true. In addition to an expense ratio, there are additional considerations that investors should consider when making an informed choice between ETFs and funds—including spreads and commissions. This white paper provides an informative look at the true cost of ownership of no-transaction-fee (NTF) mutual funds and ETFs—with a focus on active investing strategies. Investors will walk away with a solid understanding of:
The complete cost of ownership for ETFs and NTF mutual funds
How active trading strategies affect the cost of ETF and NTF mutual fund ownership
Ownership considerations—rules of thumb for determining the most cost-effective investment vehicle
Equal Weight Sector Investing Insights2
By investing in a specific sector—or a group of securities within the same industry—investors may be able to take advantage of a slice of the market that is positioned for growth. However, not all sector indices are the same. This informative piece provides insights on the differences between a cap‐weight and equal weight sector investing approach—highlighting the potential performance, diversification and systematic rebalancing benefits of equal weighting within a specific sector. Advisors will learn the importance of understanding the sector weighting methodology when choosing a sector investment, the potential downsides of being overweighted in a sector’s largest constituents and the performance differentials between varying sector index weighting schemes.
Essentials of Alternatives
Interest in alternative investments has been growing for years, but still many investors don’t know exactly what they are. This comprehensive educational resource provides an extensive overview of alternative investments, including what they are and how they’ve traditionally been accessed, plus the potential benefits of investing in alternatives using mutual funds and ETFs.
ETFs enable investors to purchase a pool of securities with the ease of a single trade — providing convenience and saving the investor additional transactional costs. Today ETFs are listed on all major stock exchanges (domestic and globally) and are proving an effective liquid investment that generally are more tax efficient than traditional mutual funds. Learn more about ETFs and the important role they can potentially play in investor portfolios.
Looking for Tax Efficiency
Preparing for tax season? ETFs are tax-efficient investments that generally produce lower capital gains distributions than open-end mutual funds.4 Guggenheim’s “Looking for Tax Efficiency” piece describes how the ETF structure and the role of the authorized participant help to facilitate this process.
1 Equal Weight ETFs may not be suitable for all investors. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Most investors will also incur customary brokerage commissions when buying or selling shares of an ETF. Investments in securities are subject to market risks that may cause their prices to fluctuate over time. Please review a prospectus carefully for more information of the risks associated with each ETF. Sector funds may not be suitable for all investors. Investing in sector funds is more volatile than investing in broadly diversified funds, as there is a greater risk due to the concentration of the fund’s holdings in issuers of the same or similar offerings.
2There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risk. The investment return and principal value of any investment product will fluctuate with changes in market conditions.
3 Actively managed ETFs may result in taxable gains for the shareholders. An actively managed ETF may engage in active and frequent trading of its portfolio securities. A high portfolio turnover rate can result in an increase in taxable capital gains distributions.
4 There are mutual funds that are managed with the goal of achieving tax efficiency.
The information contained herein is for educational and illustrative purposes and should not be regarded as tax advice. Please consult your tax advisor and/or state and local tax offices for more complete information.