The SEC Office of Investor Education and Advocacy ("OIEA") provided investors with guidance on traditional and non-traditional index funds.
In the first bulletin, the OIEA provided basic information on traditional index funds as well as their associated costs and risks. In the second bulletin, the OIEA described certain types of non-traditional index funds (e.g., Smart Beta, Quant Funds, and Environmental, Social and Governance Funds), explained the differences between these funds, and traditional index funds and urged investors to consider these funds in relation to market returns, diversification, complexity and cost.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
