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Why ETF prices may not necessarily reflect their true value
The exchange-traded fund (ETF) may seem like a straightforward investment vehicle, but when looking under the hood there can be many complexities, such as discrepancies between price and the value of the underlying holdings. In this audiocast, Mike McManus, Investment Strategist within Bank of America's Global Wealth & Investment Management Division, discusses why these discrepancies occur and where they're likely to arise.
For more information on this topic, please read the full paper: Are you ETF sticker-shocked? Don't be. Why ETF prices may not necessarily reflect their true value.
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Exchange Traded Funds (ETF's) are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETF's are sold via a prospectus.
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