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STRUCTURAL CHARACTERISTICS
Guide to Registered Products |
Guide to Registered Products PDF |
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Exchange traded funds (ETFs) fall within the broader universe
of investments sometimes referred to as “registered
products.” Stated simply, an investment vehicle is said to be “registered” and “effective” if the specifics of the investment
have been formally disclosed, filed with and reviewed by the
Securities and Exchange Commission (SEC), which is the top
regulatory body for the securities industry. Most investments,
including ETFs, must be registered with the SEC, although
there are certain specific exceptions.
A Look at Regulation
In reviewing each registered investment product, securities
regulators check that the vehicle meets specific informational
parameters and operational regulations as outlined in either
the Securities Act of 1933 or the Investment Company Act of
1940. Both of these securities laws were enacted by Congress
to provide for the disclosure of specific data necessary for
investors to make informed investment decisions.
The SEC enforces these laws and modifies provisions of these
laws as deemed necessary. It does not pass judgment on
whether or not individual investments are worthy of investment.
Rather, the SEC simply ensures that registered investment
vehicles meet the letter of the applicable laws.
Different Flavors and Structures of Registered Products
Just because two investment vehicles are duly registered
with regulators does not by any means indicate that they
are identical in structure, objective, operation, style, function,
benefits, features or taxation to investors. The variations of
registered products are listed in the accompanying table.
Each is described below so investors can understand the
structure and daily operation.
Types of Registered Products |
1940 Act Registered Products |
1933 Act Registered Products |
Open-end mutual funds
Exchange traded funds (ETFs)
Unit investment trusts (UITs)
Closed-end funds |
Grantor trusts
• Hard assets
• Future contracts on
hard assets
• HOLding Company
Depositary ReceiptS
(HOLDRS)
Debt Securities
• Exchange traded notes |
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This information is subject to change at any time and should not be construed as a recommendation of any specific security
or strategy.
This information does not constitute tax advice. Please consult your tax advisor and/or state and local tax offices for more
complete information.
Securities are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks,
including the possible loss of the principal amount invested.
RydexShares™ are distributed by Rydex Distributors, Inc., an affiliate of Rydex Investments.
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