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ETFs Live Napkin

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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