What is an ETF?

in #investing7 years ago

What is an ETF?

  • Exchange Traded Funds are securities that tracks an index of commodities, bonds or stocks.
  • This allows for a Balanced/Diversified investment with a low Management Expense Ratio.
  • ETFs have become very popular in the past 20 years as they tend to outperform Managed Funds.
  • Since ETFs are the market average, they tend to be less volatile than individual holdings.

Common ETFs

  • Stock Index Tracking (Like S&P 500)
  • Bond ETFs
  • Commodity ETFs

Why would someone purchase an ETF?


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very informative video.

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