Morgan Stanley Lists New Section In ETF US Guidebook Covering Exchange Traded Products

Morgan Stanley has introduced a new section in the ETF US Guidebook covering other Exchange Traded Products, which include Exchange Traded Commodities (ETCs), Exchange Traded Currency Products, Exchange Traded Notes and HOLDRS. Those are not "ETFs" as many are listed

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Morgan Stanley has introduced a new section in the ETF US Guidebook covering other Exchange Traded Products, which include: Exchange Traded Commodities (ETCs), Exchange Traded Currency Products, Exchange Traded Notes and HOLDRS.

Those are not “ETFs” as many are listed notes or securities, and not open-end funds, which means the regulatory and tax treatment may be different than traditional ETFs.

Similar to Exchange Traded Funds, they can be created and redeemed on a continuous basis by market makers, matching the liquidity of the underlying markets. ETCs are open-ended securities that can be bought and sold intraday by investors on an exchange in the same way as any equity.

In the United States, according to the Guidebook, there were 428 ETFs managed by 14 managers trading on five exchanges with assets of $428.36 billion at the end of March 2007. Year to date there have been 85 new ETFs launched in the United States, and there are plans to launch another 364.

Additionally, there are 47 other Exchange Traded Products managed by six managers trading on two exchanges with assets of $28.78 billion.

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