The combination of low expense ratios, high liquidity, flexibility, tax efficiency, and broad diversification—in instruments that track an index, market sector, or commodity—has helped Exchange-Traded Funds (ETFs) strike a resounding chord with investment professionals and the investors they serve.

Since their creation in 1993, the market has grown exponentially to include more than 500 ETFs—attracting more than $500 billion in U.S. investor assets. ETFs have a projected annual domestic growth rate of 33% over the next five years¹—with the potential to trend substantially higher as they are more frequently included in retirement accounts. Global annual ETF growth is projected at 35% through 2009²—a pace that will place invested assets near the $2 trillion mark by 2010.¹

"The addition of ETF Center to NetExchange Pro^® enhances our ability to provide you and your clients with an extensive suite of fund solutions—and underscores our commitment to providing you with a broad array of cutting-edge products, services, and technology solutions."

To help you stay ahead of client demand, Pershing has launched ETF Center, a new information suite that includes premium content. This invaluable resource is available to users via a direct link in NetExchange Pro. ETF Center provides easy access to:

• Top-end, ETF-specific Morningstar data including timely editorial content from Morningstar analysts
• Sophisticated analytical tools
• Detailed information from multiple fund families on more than 500 ETFs
• A comprehensive glossary of ETF terms

SophisticatedTools to Grow Your Business
Pershing has partnered with industry experts to deliver a wealth of premium content and best-of-breed tools that enable you to research, compare, and invest in ETFs. ETF Center’s user-friendly home page and smart online design makes for easy navigation and a seamless, intuitive user experience.

• Comprehensive ETF Profiles—Access more than 100 data points, updated daily, about individual ETFs.
  ETF Profile segments include:
  
  
  • Snapshot, for performance overviews, key statistics, portfolio analysis, and top five holdings
  • Total Returns, including trailing total returns, historical quarterly net asset value (NAV) and market returns, and price charts
  • Risk, for key volatility measures such as standard deviation, mean, sharpe ratio, and modern portfolio theory statistics such as R-Squared, Beta, and Alpha
  • Portfolio, for style box details, investment valuation, investment-style history, valuations and growth rates, asset allocation details, sector weightings, and top-25 holdings
  
  
• Convenient ETF Quickrank-This powerful tool enables you to rank all ETFs by category, style box, performance/total return, trading volume, and other key criteria
• ETF Screener-A quick, easy way to filter ETFs by market, year-to-date return, price-to-earnings ratio, expense ratio, average market capitalization, total assets, or by other criterion you select
• ETF Cost Analyzer-Considers cost, returns, and time horizon to determine whether ETFs, stocks, or mutual funds are the most appropriate investment for your clients. Results, ranging from the least-to most-expensive choice are displayed in an easy-to- read graph and table
• Timely Commentary and Educational Content-Keep your product-specific knowledge up-to-date with a library of current articles covering ETF basics, as well timely editorial content from Morningstar analysts
• Access to ETF Providers-Visit the web sites of many ETF providers via direct links

The addition of ETF Center to NetExchange Pro enhances our ability to provide you and your clients with an extensive suite of fund solutions—and underscores our commitment to providing you with a broad array of cutting-edge products, services, and technology solutions. To take advantage of this important tool that can help you become competitive in this growing asset class, please contact your home office.

Please Note: Be on the lookout for the “ETF Spotlight” in future editions of The Pershing Press. This recurring feature will provide educational articles supplied by ETF providers and industry experts.

¹ Celent, “ETFs-All Aboard,” June 19, 2006.
² Financial Research Corporation