The Canadian Securities Administrators (CSA) has launched an awareness campaign encouraging investors to read the Exchange-Traded Funds (ETF) Facts they receive from their dealers when they invest in an ETF, an investment fund that trades like a stock but may hold a diversified portfolio of investments.
Effective December 10, 2018, dealers will be required to deliver the ETF Facts to investors who purchase ETF securities. The ETF Facts will provide investors with key information about an ETF in an accessible, easy-to-understand format, including potential benefits, risks and costs of investing in an ETF.
Louis Morisset, CSA
Reviewing the ETF Facts helps investors have informed conversations with their registered investment advisors about their ETF investments, for example how an ETF would fit within their portfolio or how certain features of an ETF, such as its fees and expenses, compare to other ETFs,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.
The campaign includes a new webpage and interactive ETF Facts sample highlighting information investors can expect from the ETF Facts, such as fund performance, management expense ratio (MER), fund holdings and more. There are also brief ETF Facts explainer videos on YouTube.
Investors can also consult the ETF Facts on the website of the company offering the fund, or simply ask their investment advisor for a copy.
The CSA, the council of securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.