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Interactive Options Course
Lesson 2 of 3
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Where and when ETFs are traded There are over 2,200 ETFs in the US ETF marketplace, as of mid-2019, with US$3.5 trillion of assets under management.
Sector ETFs Sector ETFs invest in stocks and securities of specific sectors, such as:
They give you targeted exposure into that specific sector so you can take a “sector bet”.
Thematic ETFs provide exposure to related themes or trends – what is hot in the market right now or what a lot of people are talking about, such as:
technology trends, including
Environmental Social and Corporate Governance (ESG)
WisdomTree was one of the pioneers of factor ETFs, which provide exposure to certain fundamental attributes such as dividends or earnings, or other factors that are related to higher returns which target those specific factors such as:
A lot of factor ETFs fall into the bucket known as smart beta, which is also known as modern alpha at WisdomTree.
Leveraged ETFs use derivatives or take on debt to magnify exposure, both long and short, for a specific investment – exposure that the ETF is designed to track. The important thing to understand about leveraged ETFs is they are designed to be daily trading vehicles. They are reset at the end of the day and provide leveraged exposure for one single day.
They are:
ETFs are all listed on a stock exchange, but you must trade them through:
You need to be able to access a broker-dealer platform to be able to access ETFs that are listed on an exchange.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. U.S. investors only: To obtain a prospectus containing this and other important information, please call 866.909.WISE (9473) or click here to view or download a prospectus online. Read the prospectus carefully before you invest. There are risks involved with investing, including the possible loss of principal. Past performance does not guarantee future results.
You cannot invest directly in an index.
Foreign investing involves currency, political and economic risk. Funds focusing on a single country, sector and/or funds that emphasize investments in smaller companies may experience greater price volatility. Investments in emerging markets, real estate, currency, fixed income and alternative investments include additional risks. Due to the investment strategy of certain Funds, they may make higher capital gain distributions than other ETFs. Please see prospectus for discussion of risks.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.
Interactive Advisors offers two portfolios powered by WisdomTree: the WisdomTree Aggressive and WisdomTree Moderately Aggressive with Alts portfolios.
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from WisdomTree U.S. and is being posted with its permission. The views expressed in this material are solely those of the author and/or WisdomTree U.S. and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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