On the other hand, 63% of those who don’t own ETFs call themselves “novices,” and 53% of respondents say they don’t invest in ETFs because they don’t fully understand the product, according to the Schwab report. [Schwab ETF Study]
The ICI said its new website features several questions and answers designed to help investors navigate the basics of ETF investing in plain, easy-to-understand language. The site also features links to additional ETF resources.
“Independent studies continue to show ETF usage is on the rise as more investors experience their many advantages,” said Ben Fulton, Managing Director of Global ETFs for Invesco PowerShares. “This initiative will help raise the awareness of ETF construction and potential implementation.”
“Today’s investors are looking for new ways to build better portfolios and they are increasingly turning to ETFs,” added Michael Sapir, CEO of ProShare Advisors. “Our ability to come together as an industry to offer them educational resources is timely and important. All of us have a stake in ensuring investors have the knowledge and know-how they need to invest in ETFs with confidence to achieve their financial goals.”
The 14 firms involved with the website’s launch are: AdvisorShares Investments LLC, Charles Schwab Investment Management, Columbia Management, db-X ETFs, First Trust Portfolios, L.P., FlexShares, Guggenheim Investments, Invesco PowerShares, iShares, Pacific Investment Management Company LLC (PIMCO), ProShares, State Street Global Advisors, Market Vectors and Vanguard.