I've recently been looking at some ETFs I'd like to invest in but whenever I look at the prospectus I see three things:
- they may lend money to "eligible third parties" meaning to whomever they want
- they may use finacial derivatives to increase returns (they don't even specify what the underlying for the derivatives can be)
- they give a risk indication for the product that excludes counterparty risks -they all use the same language or very similar language to express all this
Is this stuff standard? Are there any ETF's that actually are only allowed to track whatever they say they track without these broad discretionary powers?
Submitted October 30, 2021 at 01:42PM by willkydd https://ift.tt/2ZGOy56
