We took to the streets of San Francisco and asked people, "What is an ETF?" Here's what they had to say.
Top ETF Questions & Answers
Find out how iShares Funds Can Help You Keep More of What You Earn
The savings in fees and taxes by investing with iShares Funds can really add up. Learn more.
1Morningstar, as of 6/30/14. Comparison is between the average Prospectus Net Expense Ratio for the oldest share class of iShares ETFs (0.37%) and active Open-End Mutual Funds (1.12%) that are available in the U.S. and have 10 year track records (excluding municipal bond and money market funds).
"Tax cost" is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance. The average tax cost of the iShares ETFs and active Open-End Mutual Funds included in the comparison = 0.53% and 1.05%, respectively.
2Shares of iShares Funds may be bought and sold throughout the day on the exchange through any brokerage account. However, shares may only be created or redeemed directly from the Fund by Authorized Participants-- typically large institutional investors--in very large creation/redemption units. When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds.
3Morningstar Direct as of 9/30/2014.
Good to Know
iShares ETFs cost about 1/3 as much as the typical mutual fund and have 1/2 of the average tax cost when compared to similar mutual funds.1