Exchange-Traded Funds (ETFs)

Question 1

Creation Unit

Answer 1

Large blocks of shares in an ETF, typically 50,000 shares or more.

Question 2

Exchange-Traded Fund (ETF)

Answer 2

A type of exchange-traded investment product that must register with the SEC as either an open-end investment company (generally known as “funds”) or a unit investment trust. ETFs offer investors a way to pool their money in a fund that makes investments in stocks, bonds, or other assets and, in return, to receive an interest in that investment pool. ETF shares are traded on a national stock exchange.

Question 3

Product Description

Answer 3

A summary of key information about an ETF that explains how to obtain a prospectus.

Question 4

Standard & Poor’s Depositary Receipts (SPDR) Trust

Answer 4

An ETF designed to replicate the performance of the Standard & Poor’s 500 Index. Because of its acronym, the SPDR instrument is referred to as a “spider.”