Contact Information: Contact: Morrison Shafroth CSG/PR (720) 470-3653
Grail Advisors Issues White Paper on Exchange-Traded Funds
New Trends Emerging in Product Development
| Source: Grail Advisors
SAN FRANCISCO, CA--(Marketwire - August 19, 2009) - Grail Advisors, a leader in the
development and distribution of active Exchange Traded Funds (ETFs), today
issued a white paper on Exchange-Traded Funds and the state of the ETF
marketplace.
The paper -- "Exchange-Traded Funds: A Passive Past and an Active Future"
-- provides a backdrop on the use of ETF securities as well as an analysis
of the Funds' evolution. Most importantly, the paper looks forward to
future development possibilities of the ETF industry, including the
expanding marketplace for actively-managed ETFs.
The paper notes that with assets climbing to more than $725 billion in just
15 years, ETFs are one of the industry's fastest-growing investment
vehicles. Why all the interest in ETFs? According the Grail Advisors study
"...because they're easy to buy, inexpensive to own, tax efficient, and
totally transparent(1) in terms of portfolio allocation. ETFs enable
investors to trade a portfolio of stocks with a single investment as easily
as if they were buying an individual stock."
The Grail Advisors paper outlines the competitive differences between ETFs
and mutual funds, and cites other independent research, including a recent
survey by Charles Schwab that found 79% of registered investment advisors
are looking to ETFs as the top investment vehicles for their clients.
"For mutual fund managers and financial advisers, the report outlines why
investors are increasingly moving out of traditional mutual funds and
putting money into ETFs," said William M. Thomas, CEO of Grail Advisors
LLC. "Market appreciation is uncertain, of course, and so are immediate
flows into actively-managed funds, but we think it's reasonable to expect
worldwide ETF assets to reach the $1 trillion milestone in the very near
term."
To receive a copy of "Exchange-Traded Funds: A Passive Past and an Active
Future," call Grail Advisors at (415) 677-5870, or email
cchappell@grailadvisors.com.
In May, Grail Advisors launched the market's first true, actively-managed
equity ETF, the Grail American Beacon Large Cap Value ETF (GVT). Traded on
the New York Stock Exchange, GVT represents the first fund designed to
incorporate traditional investment management approach and a multi-manager
format into an active ETF structure. The Grail American Beacon
International Equity ETF -- the first actively-managed international ETF of
its kind -- will be launched later this year.
The firm has also announced plans to introduce the industry's first
actively-managed ETFs using a single-manager approach. Four funds -- RP
Growth ETF, RP Focused Large Cap Growth ETF, RP Technology ETF, and RP
Financials ETF -- are slated for in September. RiverPark Advisors, LLC, of
New York will serve as the primary sub-adviser for each of the funds.
About Grail Advisors LLC
Grail Advisors LLC, an innovator in the creation and distribution of
actively managed Exchange Traded Funds, partners with established asset
managers, distributors, and related financial institutions to design and
deliver actively managed ETFs. Grail Advisors was created to deliver ETFs
using fully disclosed active portfolio management to the global investment
community.
(1) ETFs are considered transparent because their portfolio holdings are
disclosed daily.
Ordinary brokerage fees apply. Frequent trading of ETFs could significantly
increase commissions and other costs which could offset any savings from
lower fees.
Shares are not individually redeemable and that the owners of Shares may
purchase or redeem Shares from a Fund in Creation Units only.
For more information about taxes, consult your tax attorney or accountant
for advice.
There are risks involved with investing including possible loss of
principal. The Grail ETFs are actively managed and the Shares may trade
above or below their net asset value. The trading price of shares may
deviate significantly from net asset value during periods of market
volatility. Shares are not FDIC insured, may lose value, and will have no
bank guarantee.
A registration statement relating to the RP Growth ETF, RP Focused Large
Cap Growth ETF, RP Technology ETF, and RP Financials ETF have been filed
with the U.S. Securities and Exchange Commission but have not yet become
effective. These securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes effective.
An investor should consider investment objectives, risks, charges and
expenses carefully before investing. The Prospectus contains this and other
information. For more complete information about the Grail ETFs or to
obtain a Prospectus, call 415-677-5870. Please read the Prospectus
carefully before investing.
ALPS Distributors, Inc. is not affiliated with RiverPark Advisors.
The Grail ETFs are distributed by ALPS Distributors, Inc.