Fund Facts and ETF Facts - Investor Centre (2024)

FAQs

What is the difference between a fund facts document and an ETF facts document? ›

Your mutual fund dealer must deliver Fund Facts to you before you buy a mutual fund. Exchange-traded funds (ETF) have a similar plain-language document named ETF Facts. Your dealer must deliver an ETF Facts to a client within two days of a purchase.

Take the time to read the ETF Facts to find out more about the ETF before you invest. Since December 2018, your dealer (the firm) is required to deliver the ETF Facts to you no later than midnight on the second business day following the purchase of ETF securities.

The Fund Facts is a document that highlights key information for investors about a mutual fund or an exchange-traded fund (ETF). You can consult the Fund Facts on the website of the institution offering the fund, or simply ask for a copy.

The fund facts document is a clear, plain language document that contains key information about the mutual fund you're thinking about purchasing. In no more than two double-sided pages, it explains the basics of what the fund invests in, the risks involved, how the fund has performed, and the costs of ownership.

Generally, your dealer is required to deliver Fund Facts to you prior to your purchase. What is Fund Facts? Fund Facts is an important document with key facts about the mutual fund you are purchasing.

Fund Facts

It contains key information about a mutual fund, including what the fund invests in, how the fund has performed, the risks involved, and the costs of investing. The Fund Facts document is available for every class and series of a mutual fund.

A KIID provides summary information in relation to an ETF to assist investors in understanding the nature and risks of investing in an ETF prior to making an investment decision.

Mutual fund fact sheets are published by the fund houses or asset management companies (AMCs) that offer the mutual fund schemes. How often are mutual fund fact sheets updated? Mutual fund fact sheets are updated monthly and are usually available on the fund house's website or through other online platforms.

What items are disclosed in the fund facts documents? ›

This includes the basic information on the background of the fund, including the date the fund started, its total value at the time the Fund Facts was produced, the fund's management expense ratio (MER), the name of the fund manager and portfolio managers, the fund's distributions and the minimum investment needed to ...

Please note that Fund Facts and ETF Facts documents are required to be filed and posted annually and any time there's a material change to the fund that requires a change to the Fund Facts and/or ETF Facts documents.

An ETF Facts document is a disclosure document required for Canadian exchange-traded funds, in addition to other regulatory disclosure documents such as the Prospectus.

Since the job of most ETFs is to track an index, we can assess an ETF's efficiency by weighing the fee rate the fund charges against how well it “tracks”—or replicates the performance of—its index. ETFs that charge low fees and track their indexes tightly are highly efficient and do their job well.

Starting an exchange-traded fund requires significant startup capital and financial expertise. You can hire a firm to help create, market, and manage your fund. The startup costs include about $2.5 million to purchase shares of the assets in the fund in order to launch it.

FoFs are actively managed funds while ETFs are considered to be passively managed funds. Hence the cost or the expense ratio is higher in the case of FoFs as compared to ETFs.

The fund's legal documents, such as the partnership agreement, offering memorandum, and subscription agreement, provide the framework for the fund's operations and investments. These documents must accurately reflect the fund's investment strategy, risk management framework, and regulatory requirements.

A KIID (Key Investor Information Document) is an information sheet provided by the fund manager that includes all the key facts and figures about a fund. It describes what the fund does, the investment risk, charges and performance to help you assess whether a particular investment fund meets your needs.

The main difference between ETFs and mutual funds is an ETF's price is based on the market price, and is sold only in full shares. Mutual funds, however, are sold based on dollars, so you can specify any dollar amount you'd like to invest. ETFs also tend to be cheaper than mutual funds.