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STRUCTURAL CHARACTERISTICS
Guide to Registered Products |
Guide to Registered Products PDF |
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Registered Products at a Glance |
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Open-end mutual fund |
ETF |
UIT |
Closed-end mutual fund |
Grantor trust |
HOLDR |
ETN |
1940 Act SEC
registered |
Yes |
Yes |
Yes |
Yes |
No |
No |
No |
Termination
date |
No |
No |
Yes |
Yes |
Yes |
No |
Yes |
Reinvestment
of dividends |
Yes |
Yes |
No |
No |
No |
No |
Yes |
Restricted
holdings |
No |
No |
Yes |
No |
Yes |
Yes |
No |
Can hold
hard assets |
No |
No |
No |
No |
Yes |
No |
No |
Can hold
equities |
Yes |
Yes |
Yes |
Yes |
No |
Yes |
No |
Important Points to Remember
- Investment vehicles registered with the SEC fall under two categories: the Securities Act of
1933 and the Investment Company Act of 1940.
- Four main vehicles fall under the 1940 Act.
- Mutual funds—shareholder money is pooled together and invested in a basket of securities for the
underlying portfolio—which shareholders may trade, in most cases, once per day.
- ETFs—like mutual funds, invest in a basket of securities, but trade continuously on an exchange.
- Unit Investment Trusts (UITs)—predecessors of ETFs—also trade on an exchange, but have a
pre-set termination date and hold a fixed basket of securities throughout their entire term.
- Closed-end funds—issue a fixed number of shares through an initial public offering—after which
the shares trade on a stock exchange.
- There are two main investment vehicles types registered under the 1933 Act—grantor trusts and debt securities.
- Grantor trusts are further classified into hard assets (invest in the assets directly and the shares denote direct ownership of the actual assets), futures contracts on hard assets (invest in hard assets
indirectly through futures contracts) and HOLDRS (grantor trusts that hold equities).
- Exchange traded notes (ETNs) are debt securities issued by an investment bank whose
performance is linked to an underlying strategy or index.
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This information is subject to change at any time and should not be construed as a recommendation of any specific security
or strategy.
This information does not constitute tax advice. Please consult your tax advisor and/or state and local tax offices for more
complete information.
Securities are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks,
including the possible loss of the principal amount invested.
RydexShares™ are distributed by Rydex Distributors, Inc., an affiliate of Rydex Investments.
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