What type of securities does iSectors allocate to/invest in?
iSectors primarily utilizes exchange-traded funds ETFs (which are baskets of stocks that trade like one stock) to achieve its allocation objectives. However, at times, it may be necessary to utilize Exchange-Traded Notes (ETNs), open or closed end mutual funds or other SEC-registered funds. ETFs can have multiple advantages when compared to mutual funds, including reduced management and commission costs, tax advantages, and improved liquidity. Click here for our article that explains Why ETFs have lower fees than mutual funds.
