ETF Education

The industry has fallen short in informing investors about exchange-traded funds (ETF), according to a Rydex survey of 500 mutual fund investors conducted in July. In fact, more than a third (38%) of individual investors do not know what an ETF is, and more than half (53%) do not know the difference between an ETF and a mutual fund. Additionally, 63% of investors indicated that their main reason for not investing in ETFs is because they don’t know enough about them. The good news is that despite a lack of awareness, investors showed an interest in learning about ETFs. More than a third (35%) of individual investors said they would like to learn more about ETFs, and among those investors who work with financial professionals, 40% would like more information. Also, about half (51%) of individual investors would consider investing in ETFs if their advisor suggested it.