Don't Get Fooled by An ETF's Name

April 02, 2012

When it comes to ETF names, investors should never “judge a book by its cover.” Instead they should rely on personal research to know what they’re buying, according to an article on ETF Trends.

From a quick glance—whether it be the name, ticker or major weightings of the fund—investors could be attracted to an ETF, and might not be aware of the fund’s particular allocations, according to the piece on ETF Trends.

According to the article, the following funds have potentially deceptive names:

  • ProShares Hedge Replication ETF (NYSEArca: HDG)
  • Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ)
  • U.S. Oil Fund ETF (NYSEArca: USO)
  • U.S. Natural Gas Fund ETF (NYSEArca: UNG)
  • Pimco Build America Bond Strategy Fund ETF (NYSEArca: BABZ)
  • iShares MSCI Emerging Market Eastern Europe Index Fund ETF (NYSEArca: ESR)
  • iShares MSCI Pacific Ex-Japan Index Fund ETF (NYSEArca: EPP), Vanguard Pacific ETF (NYSEArca: VPL) and PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio ETF (NYSEArca: PAF)
  • Market Vectors Investment Grade Floating Rate ETF (NYSEArca: FLTR)

 

For the full breakdown on these funds, visit ETFTrends.com.

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