ETFs
Exchange
Traded
Funds
A collection of
- Stocks
- Bonds
- Other Assets
Replicate the movements of a Market, Industry, or Country.
Shareholders own shares in the funds and can
- Trade
- Purchase
- or Short
Short them (bet that a stock will fall in price)
Stock (Tradable during the day) → Mutual fund (Provides diversification) → ETF
ETFs VS. Mutual Funds
Many similarities but one main difference!
An ETF trades any time of the day
Mutual Funds trade only once a day
Benefits
- No minimum deposit
- Low management fees
- Diversification
- Tax Benefits
Examples
- The DOWJONES Industrial Average
- The sp500
- The NDQ composite
Good Luck!
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