@article {Moriarty42, author = {Kathleen H. Moriarty}, title = {Introducing ETVs}, volume = {2005}, number = {1}, pages = {42--48}, year = {2005}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Exchange-traded funds ({\textquotedblleft}ETFs{\textquotedblright}) were first developed in the U.S. to make program trading available to retail investors. An ETF is a hybrid investment company registered with the U.S. Securities and Exchange Commission ({\textquotedblleft}SEC{\textquotedblright}) which holds a securities portfolio and combines continuous issuance and redemption of its units/shares at daily net asset value ({\textquotedblleft}NAV{\textquotedblright}) with exchange listing and trading of its shares/units at market prices throughout the entire trading day. This hybrid structure does not fit easily into the existing regulatory regime governing securities; therefore each ETF must request and receive from the SEC exemptive, no-action, and other relief from certain provisions of applicable federal securities laws prior to market introduction. The success of the ETF concept has spurred demand for easily tradable retail products holding a portfolio of one or more non-traditional assets. Requests for U.S. exchange-traded vehicles holding or tracking gold, silver, crude oil, and other commodities have become more frequent and culminated with the launch of StreetTRACKS Gold Trust in November of 2004, followed by iShares Comex Gold Trust in January 2005. This demand for low cost and transparent retail products offering exposure to commodities and other non-securities asset classes continues to expand. The use of a new term: {\textquotedblleft}exchange-traded vehicle{\textquotedblright} or {\textquotedblleft}ETV{\textquotedblright} should help to distinguish new products which are not investment companies, hold non-traditional portfolio assets, contain many essential features of the original ETFs, and trade on an exchange, from other pooled products that are traded on an exchange. Also, the new term should help eliminate confusion between traditional ETFs and the new non-investment company exchange-traded vehicles.}, URL = {https://guides.pm-research.com/content/2005/1/42}, eprint = {https://guides.pm-research.com/content/2005/1/42.full.pdf}, journal = {ETFs and Indexing} }