Funds Scramble to Deliver Transparency ETFs Offer
September 30th at 1:00am by Tom Lydon
Investors who want to know what they own need to look no further than exchange traded funds (ETFs), something that has become increasingly apparent.
After the last few tumultuous weeks we’ve had, it’s no shock that investors would like to get a closer look at what, exactly, is in their portfolio. That’s why some fund companies are pushing new portfolio disclosure standards to reassure nervous investors.
Many companies, such as American Beach, JPMorgan and Janus, are going to go the extra step beyond just quarterly disclosure of portfolio holdings, reports Hannah Glover for Ignites. Thorough disclosure of holdings within a fund are aimed at informing the shareholder of their holdings’ investment process, as well as keeping them from making any emotionally charged decisions. The last thing the funds want is shareholders pulling out their money because they don’t have good information.
The most recent update of disclosure holdings was within money market funds, but equity and fixed-income products show that they are updating as well.
This is one reason we love ETFs and believe they’re superior to mutual funds: if you want to know what you own, all you have to do is look up your fund and the information is there for the taking. ETFs have no need to step up their disclosure, as they are transparent funds, and you always know where you’re invested.
