What is an ETF prospectus?

An ETF prospectus is the core disclosure document that explains what the ETF is trying to do, what it invests in, and what risks you're taking. It also includes fees, expenses, and operational details.

You don't need to read every word, but it's worth scanning the sections on investment objective, principal risks, fees, and how the ETF tracks its benchmark or executes its strategy.

If an ETF is complex (leveraged, inverse, derivatives-heavy, or niche), the prospectus becomes more important. Marketing summaries can be overly simplified, but the prospectus spells out what the fund actually can and can't do.