Rydex Investments has announced the launch of a comprehensive educational initiative to help bridge the gap between the burgeoning ETF marketplace and investor awareness about exchange-traded funds. The firm’s ETF Essentials program offers individual investors and financial professionals alike an opportunity to sharpen their knowledge by exploring subjects such as ETF liquidity, pricing, redemption and the ETF creation process.
“As a nontraditional fund company that specializes in bringing institutional-style strategies to retail investors, Rydex has made a commitment to investor education,” says Tim Meyer, ETF business manager at Rydex Investments. “We’re extremely excited to introduce ETF Essentials, as research shows that there is a dearth of investor knowledge when it comes to exchange-traded products.”
In July, Rydex conducted a survey of 500 mutual fund investors, which revealed that the industry has fallen short in educating investors about exchange-traded funds. In fact, more than a third (38 percent) of individual investors do not know what an ETF is, and more than half (53 percent) do not know the difference between an ETF and a mutual fund. The main reason 63 percent of investors don’t invest in ETFs is because they don’t know enough about them.
Despite a lack of awareness, investors indicate that they’re interested in learning more. More than a third (35 percent) of individual investors would like more information about ETFs. And among those who work with financial professionals, 40 percent would like to know more about ETFs — and about half would consider investing in ETFs if their advisor suggested it.