Introduction to ETFs

Exchange Traded Funds

ETFs or “exchange-traded funds” are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

Benefits of ETFs

Why Invest In ETFs?

If you’re looking for an affordable, tax efficient way to access a broad range of asset classes, investing in ETFs might be right for you. Here are some of the reasons ETFs work for so many investors:

Diversification

ETFs let you access a diverse mix of asset classes, including domestic and international stocks, bonds, and commodities.

• They cover most major asset classes and sectors, offering you a broad selection.

• International ETFs, regional ETFs, and ETFs for specific industries and market niches provide access to sectors where it may be more difficult to buy and sell individual stocks and bonds.

Lower cost

ETFs typically have lower operating expense ratios (OERs) than actively managed mutual funds. Lower cost
al funds.

Trading flexibility

ETFs combine the trading versatility of individual securities with the diversified qualities of mutual funds to meet a variety of investment needs.

Tax efficiency

ETFs are widely considered to be more tax efficient than actively managed mutual funds for a number of reasons.

During various market environments, a diversified portfolio can add growth potential for long-term investments. By combining 2 or more factors such as value, quality, low volatility, and momentum, multi-factor ETFs are the building blocks used by many investors to create a portfolio that will help provide more consistent outperformance.

Core Factors of ETFs

These Core Factors Of ETFs Use Unique Methodologies That Combine Several Factors And Can Provide

  • Diversified exposure
  • Stronger core holdings
  • Potential to outperform

ARC’s 3 unique core Factors for ETFs provide investors with the building blocks to gain diversified exposure to certain portions of the equity market.