Exchange traded funds (ETF) increasingly gain popularity in global financial markets. They provide the opportunity to invest in a diversified securities portfolio within a selectedgeographical region and economic sector. Units of such funds are exchange traded as company shares.
The structure of exchange traded funds is similar to that of index funds. The value of these fund units are usually linked to a certain index (energy resources, technologies, other goods or raw materials); therefore, their price fluctuates accordingly. For example, you are investing in a fund that is linked to the oil industry index. Thus, once the index of this sector rises in value (oil prices go up), the value of your fund units should increase.
For more information about exchange traded funds, investment risks, securities services fees and commission charges call our line
We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.
It is promotional information about the investment services available from SEB bank. It cannot be construed as a recommendation, order or invitation to buy or sell specific financial instruments and may not constitute any basis or part of any subsequent transaction. Although this information is based on sources deemed to be reliable, SEB bank cannot be held responsible for any inaccuracies or losses which may be incurred by investors relying on such information. Taxation-related information may change in the future and become no longer applicable in your particular case.
Return on investments is exposed to risks: the value of investments may both rise and fall during the investment period. If the return on investments is positive at one time, there is no guarantee that it will remain such in future as well. In certain cases, losses may exceed the value of the original investment. If investment is made in financial instruments denominated in foreign currencies, changes in the exchange rate may affect the return on your investment. Before you make a decision to invest you must know all the risk factors and, either yourself or with the help of consultants, consider if such risk is acceptable to you.
Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.
Before you make a decision to invest in exchange traded funds you must, either yourself or with the help of our consultants, consider if risks associated with these funds are acceptable. We would like to warn you that:
Description of financial instruments (PDF, 150 KB, in Lithuanian)
For more information about exchange traded funds, investment risks, securities services fees and commission charges call our line
We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.
It is promotional information about the investment services available from SEB bank. It cannot be construed as a recommendation, order or invitation to buy or sell specific financial instruments and may not constitute any basis or part of any subsequent transaction. Although this information is based on sources deemed to be reliable, SEB bank cannot be held responsible for any inaccuracies or losses which may be incurred by investors relying on such information. Taxation-related information may change in the future and become no longer applicable in your particular case.
Return on investments is exposed to risks: the value of investments may both rise and fall during the investment period. If the return on investments is positive at one time, there is no guarantee that it will remain such in future as well. In certain cases, losses may exceed the value of the original investment. If investment is made in financial instruments denominated in foreign currencies, changes in the exchange rate may affect the return on your investment. Before you make a decision to invest you must know all the risk factors and, either yourself or with the help of consultants, consider if such risk is acceptable to you.
Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.
When selecting exchange traded funds, you should focus on the sector or region the fund is linked to rather than on individual securities or financial instruments: even securities of major companies make up only a few per cent of the fund investment portfolio, thus it is much more important to forecast the general perspectives of the sector than the perspectives of operations of individual companies.
Exchange traded units include various risks; therefore, when selecting funds, please consider the expected investment period, the currency, the sector the funds are linked to, also the markets where units of such funds are traded. Please note that investing in exchange traded funds is always associated with higher risk than when you invest in government bonds.
These are the most straightforward funds whose portfolio composition usually fully reflects the composition of specific share indexes. For example, if you wish to invest in US S&P500 index, all you have to do is select the fund linked to this index.
If you select these funds, you can invest in East European, Asian, Latin American or the Pacific companies (SPDR S&P Emerging Europe ETF, Dynamic Asia Pacific Portfolio ETF, iShares S&P Latin America 40 Index Fund).
The value of these fund units is linked to indexes of various economic sectors (consumer prices, alternative or nuclear energy, financial institutions, health industry, materials, technologies, biotechnologies, utilities, agriculture, mineral resources, real estate) and to the share index baskets of companies engaged in these sectors.
The value of these fund units can be linked to the value of certain products or to the general value of the index of various products (gold, silver, oil, metals). As of September of 2006, units of funds that invest in products (conclude futures or invest, for example, in stored gold bars) rather than in production plants (such as mining companies) are available on the London Stock Exchange.
Some funds whose exchange trading started in 2006 and 2007 no longer fall within the traditional definition of an ETF. The investment strategy of such funds is based on a lever. The change in value of their units is pro rata to the change in value of the index the fund is linked to, and such change is multiplied by a coefficient (lever). If the lever of the fund is 2, then the change of the index (product) the fund is linked sto will be doubled (as a result of any change in the value of the index, the value of fund units either rises or falls twice).
These funds borrow investment instruments and immediately sell them, then later repurchase them and return them to the owner for a lower price. Thus, investors are provided with the opportunity to get profit with the falling index the value of fund units is linked to: when the fund-linked index declines, the value of the short ETF unit rises, and when the index rises, the value of the fund unit falls. Funds such as UltraShort S&P500 ProShares, UltraShort Real Estate ProShares and UltraShort Oil&Gas ProShares are among the most popular.
For more information about exchange traded funds, investment risks, securities services fees and commission charges call our line
We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.
It is promotional information about the investment services available from SEB bank. It cannot be construed as a recommendation, order or invitation to buy or sell specific financial instruments and may not constitute any basis or part of any subsequent transaction. Although this information is based on sources deemed to be reliable, SEB bank cannot be held responsible for any inaccuracies or losses which may be incurred by investors relying on such information. Taxation-related information may change in the future and become no longer applicable in your particular case.
Return on investments is exposed to risks: the value of investments may both rise and fall during the investment period. If the return on investments is positive at one time, there is no guarantee that it will remain such in future as well. In certain cases, losses may exceed the value of the original investment. If investment is made in financial instruments denominated in foreign currencies, changes in the exchange rate may affect the return on your investment. Before you make a decision to invest you must know all the risk factors and, either yourself or with the help of consultants, consider if such risk is acceptable to you.
Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.
For more information about exchange traded funds, investment risks, securities services fees and commission charges call our line
We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.
It is promotional information about the investment services available from SEB bank. It cannot be construed as a recommendation, order or invitation to buy or sell specific financial instruments and may not constitute any basis or part of any subsequent transaction. Although this information is based on sources deemed to be reliable, SEB bank cannot be held responsible for any inaccuracies or losses which may be incurred by investors relying on such information. Taxation-related information may change in the future and become no longer applicable in your particular case.
Return on investments is exposed to risks: the value of investments may both rise and fall during the investment period. If the return on investments is positive at one time, there is no guarantee that it will remain such in future as well. In certain cases, losses may exceed the value of the original investment. If investment is made in financial instruments denominated in foreign currencies, changes in the exchange rate may affect the return on your investment. Before you make a decision to invest you must know all the risk factors and, either yourself or with the help of consultants, consider if such risk is acceptable to you.
Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.
To acquire or sell these fund units, you have to place a respective order with us. You can do it either by
Placed orders will be carried out in the stock exchange. Orders placed during a trading session will be carried out on the same business day, and orders placed later on the following business day.
Acquisition of fund units is subject to the security safe-keeping fee, and each transaction is subject to the financial brokerage fee. All applicable fees and the list of trading exchanges:
Securities services fees and commission charges (PDF, 150 KB)
For more information about exchange traded funds, investment risks, securities services fees and commission charges call our line
We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.
It is promotional information about the investment services available from SEB bank. It cannot be construed as a recommendation, order or invitation to buy or sell specific financial instruments and may not constitute any basis or part of any subsequent transaction. Although this information is based on sources deemed to be reliable, SEB bank cannot be held responsible for any inaccuracies or losses which may be incurred by investors relying on such information. Taxation-related information may change in the future and become no longer applicable in your particular case.
Return on investments is exposed to risks: the value of investments may both rise and fall during the investment period. If the return on investments is positive at one time, there is no guarantee that it will remain such in future as well. In certain cases, losses may exceed the value of the original investment. If investment is made in financial instruments denominated in foreign currencies, changes in the exchange rate may affect the return on your investment. Before you make a decision to invest you must know all the risk factors and, either yourself or with the help of consultants, consider if such risk is acceptable to you.
Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.
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