Investing involves a serious principal risk and no assurance can be given that the techniques described here will be successful. Returns vary and you may have a gain or loss when you sell your shares. Past performance is no guarantee of future results. It is not possible to invest in an index. Indexes are unmanaged and do not reflect the impact of transaction costs which reduce total returns. The commission costs to acquire ETFs can be significant. An investor making small repeat purchases of ETFs may incur very high transaction costs relative to a direct purchase from a no-load mutual fund family which may not be recaptured through lower fees in any foreseeable time. ETFs are passively managed and attempt to mirror their corresponding index without a portfolio manager. ETFs historically have had minimal capital gains distributions although there is no assurance this will continue in the future. Dividends and income paid by ETFs are taxable as ordinary distributions. Buying and selling ETFs will trigger tax events according to the gain or loss realized at the time of sale. See this link for specific risks ETF investors encounter.
Closed End Funds are professionally managed accounts that often include the use of leverage and are not correlated to a specific index like an ETF and therefore involve risks not associated with ETFs. Many times CEFs are used to enhance current income or to gain access to leveraged portfolio management services. CEFs generally have much higher management fees than ETFs and often trade at a significant discount or premium to the underlying net asset value of the portfolio. CEFs should not be considered an alternative to ETFs.
INS CAPITAL MANAGEMENT, LLC is a registered investment adviser and only conducts business in states where it is properly registered. The term "Registered Investment Adviser" (RIA), does not imply a certain level of skill or training.
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