Description: Loads of people play the stock market, but few understand the inner workings of even the most common securities. A favourite tool is the ETF - but where do they come from, and how do they really work?...
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If you’re going to manage other people’s money, you better know a thing or two about it.
The driving force behind an ETF is its investment adviser (also referred to as the fund manager). They are the individual or organization who determines the fund’s investments. Like any investment adviser, they must be registered with their state or the SEC. They’re bound by an agreement to work in their clients’ best interests, avoiding actions that would enrich themselves at the expense of those who trust them.
Investment advisers (or their agents) are required to hold a valid qualification or have passed an assessment - such as the Series 65 exam - that demonstrates their competence (or at least their knowledge of the law).