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A measurement of the risk-adjusted performance, considering the risk due to the specific security rather than the overall market. A positive alpha indicates that the securities or strategy have performed better than would be predicted given its volatility.
The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.
Asset Allocation
An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.
Authorised Participant
An entity chosen by an ETF sponsor to control creations and redemptions in the fund and also to source the necessary underlying assets for investment.

Important Risk Information

Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss. Diversification does not ensure a profit or guarantee against loss.