ETF Industry Launches New Website Featuring Education Focus to Help Improve Investor Understanding of ETFs

Washington, DC, October 18, 2012 - In an effort to enhance public understanding of exchange-traded funds (ETFs), industry leaders are launching a new website today reflecting the industry’s collective view on the answers to the most important questions investors ask before investing in ETFs.

Under ICI’s ETF Committee leadership, 14 ETF firms participated in the industry-led initiative to launch a new site, www.UnderstandETFs.org. The site contains educational resources for ETF investors, including a Q&A designed to help investors to better understand the basics of ETF investing. The combined assets of the nation’s ETFs were $1.2 trillion in August 2012 and represent a growing catetgory of funds in the U.S. and abroad.

“As the ETF Committee met to discuss industry issues, an opportunity for our firms to come together to help investors better understand our products—which are considered to be one of the most significant investing innovations that exist today—became clear,” said Jim Ross, ICI ETF Committee Chairman and Global Head of SPDR ETFs and Head of Intermediary Distribution at State Street Global Advisors. “Business models and competition aside—this new website educates investors using the ETF industry’s collective thinking. We h ope that investors, advisers and other market participants find it a useful tool.”

Website Designed To Help Investors with ETF Investing Information

The website features several questions and answers designed to help investors navigate the basics of ETF investing in plain, easy-to-understand language. The site also features links to additional ETF resources. A number of ETF firms are considering ways to highlight the language in various shareholder communications and outreach, in addition to their individual efforts.

“Independent studies continue to show ETF usage is on the rise as more investors experience their many advantages, so we are pleased to join industry providers and ICI in launching this comprehensive investor education program,” said Ben Fulton, Managing Director of Global ETFs for Invesco PowerShares. “This initiative will help raise the awareness of ETF construction and potential implementation.”

“Today’s investors are looking for new ways to build better portfolios and they are increasingly turning to ETFs,” said Michael L. Sapir, Chief Executive Officer of ProShare Advisors LLC. “Our ability to come together as an industry to offer them educational resources is timely and important. All of us have a stake in ensuring investors have the knowledge and know-how they need to invest in ETFs with confidence to achieve their financial goals.”

“Each firm has its own investor education efforts, but the language developed collectively by more than a dozen ETF providers represents what we collectively agree is the answer is to the basic investing questions that investors should understand,” said Adam Phillips, Van Eck’s Chief Operating Officer for Market Vector’s ETFs. “As we all use this common language, it will hopefully make it easier for investors to understand ETFs and related investing decisions.”

Fourteen ETF Firms Support the Collaborative Education Effort

The firms that are part of this industry-led education initiative include: AdvisorShares Investments LLC, Charles Schwab Investment Management, Columbia Management, db-X ETFs, First Trust Portfolios, L.P., FlexShares, Guggenheim Investments, Invesco PowerShares, iShares, Pacific Investment Management Company LLC (PIMCO), ProShares, State Street Global Advisors, Market Vectors and Vanguard.