Transparency Definition
Learn the definition of transparency and other ETF terminology from the etf.com glossary.
Learn more about Transparency
Transparency is a cornerstone of ETFs, emphasizing the disclosure of the fund's holdings and investment strategy. ETFs, by design, provide daily portfolio transparency, allowing investors to scrutinize the fund's composition and make well-informed decisions. This transparency builds trust and confidence among investors, who appreciate the ability to assess underlying assets, sector exposures and risk factors. The open-book nature of ETFs aligns with the preferences of investors seeking clarity in their investment choices, fostering an environment where market participants can confidently navigate the complexities of the financial landscape with transparency as a guiding principle.
