Investor Bulletin: Exchange-Traded Funds (ETFs)

The SEC's Office of Investor Education and Advocacy is issuing this Investor Bulletin to educate investors about exchange-traded funds ("ETFs"). This Bulletin discusses only ETFs that are registered as open-end investment companies or unit investment trusts under the Investment Company Act of 1940. [Lofchie Comment: Firms that sell ETFs should review this document carefully (as well as the FINRA Regulatory Notice linked below), even though it is intended for members of the general public, and consider, for example, whether the prospectus for any ETF has adequately discussed topics of the type covered by the Bulletin; firms should also consider whether their recommendations as to ETFs made to retail customers take account of the SEC's expressed concerns.]

Cross-Reference(s): Investment Company Act of 1940; FINRA Regulatory Notice 09-31.

View in full here (links externally to SEC website).