The Australian Securities and Investments Commission (ASIC) has warned investors about the risks associated with ETFs, Investor Daily reports. The regulator has introduced an ETF section in its MoneySmart website to help investors understand the different types of ETFs and their risks. The new ETF section on the website lists tracking errors, price errors, securities lending, exposure to less liquid investments and derivatives, counter-party risks and currency risks as some of the complex features that can apply to physical and synthetic ETFs. As per the ASIC research, investors had been quoted prices 20% off the value of the products’ underlying assets, adds The Sydney Morning Herald.
Click here for the story from Investor Daily.
Click here for additional coverage from The Sydney Morning Herald.