Following a spate of warnings on the risks of exchange-traded products (ETPs), with both the Financial Services Authority (FSA) and the Bank of England voicing concerns, the City watchdog has published two factsheets on exchange-traded products (ETPs) - one for investment advisers and one for consumers. Both are aimed at increasing the two groups' understanding of these products and raise awareness of the risks.
The factsheets provide information on what ETPs are and outlines what investors need to consider when deciding to invest in ETPs. It also looks at how ETPs can differ.
The factsheet for consumers can be accessed at http://www.fsa.gov.uk/consumerinformation/product_news/saving_investments/etp-investments.
You can also read the IC's guide to ETFs on our website at http://bit.ly/IC_ETFs
Issuance of S&P-based ETFs grows
With investor interest in exchange-traded funds (ETFs) growing, S&P Indices has witnessed a sharp rise in its ETF licensing activity during the first quarter of 2012, with 41 ETFs based on its indices launched globally during the first three months of the year.
The 41 ETFs launched represent more than half of the total number of S&P index-based ETFs launched for all of 2011 and brings the total number of S&P linked ETFs available to investors worldwide to 419. S&P Indices attributes the growth in ETF issuance to a maturing European and Asia-Pacific ETF market.
For S&P and other index providers like MSCI and FTSE International, ETF licensing is now a significant revenue stream.
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