FundQuest Releases Whitepaper to Help Advisers Navigate ETF Market

FundQuest has released a new white paper titled, “ETFs Are Not All Alike—How to Navigate the Rapidly Evolving ETF Landscape.” 

This new 16-page paper, authored by Daphne Gu, senior analyst, and Jane Li, manager of Investment Management & Research team, describes recent exchange-traded fund (ETF) industry trends and provides a variety of methods and tools that advisers can use to evaluate ETFs, FundQuest said. The paper was written to help investment professionals to better navigate the ETF marketplace in order to identify ETFs that are appropriate for their clients’ portfolios. 

Some of the key subjects in the paper include: critical differences in the formulation and updating of the wide variety of indexes on which passive ETFs are based; the role of actively managed ETFs; and some insights into the potentially unexpected results from leveraged and inverse ETFs, according to FundQuest.

“The ETF landscape is changing quickly as innovative products are introduced continuously,” Gu said. “While we expect this exciting trend to continue, industry research indicates that advisers are overwhelmed by the large number of untested and unproven ETFs and by the complexity of the categories of ETFs. This new white paper was written to help financial advisers to understand some of the key ETF attributes.”

The paper can be downloaded here.