does anyone know what's an ETF?
i've heard a friend talking about the ETF"S but i have not asked her what that means.
- jebediabartlettLv 61 decade agoFavorite Answer
Quite simply, they are " like" mutual funds..a collection of shares of stock in a certain area or sector of the market...the big difference being that they trade like an individual stock ( almost instantly) whereas funds trade at the End of Day...
Another difference is that you can purchase much smaller increments in ETF's... you can buy 10 or 15 shares if you want...whereas with mutual funds they usually have a " minimum initial investment ( anywhere from $ 1000. to $5000.)
There are ETF's in different sectors ( financial companies, mining, real estate, energy, etc.) there are ETF's focusing on countries.or areas...there are ETF's into differing market caps ( the size of the companies) there are ETF's that track certain exchanges..NASDAQ, NYMEX, etc.
I've used them in some smaller IRA accounts ( daughters') currently invested in Australia ( EWA) and materials ( XME)
Tuesday if I wanted I could change ( almost instantly) to emerging markets (EEM) or Latin America (XLF)
You can look up prices, performance, etc...just like a stock...use the " quote" box on any financial page/ site.
There should be a list there that describes the focus of each ETF. Then click on the ETF symbol if anything interests you.
- Anonymous4 years ago
An ETF is a set of like iteams (silver, gold, shares, bonds) that belong to you, yet under one ticker call. they're run by utilising mutual fund companies and distinctive times have decrease costs than mutual money. they generally beat mutual money that music a similar merchandise such because of the fact the SP 500 because of the fact mutual money have hidden taxes (people who very own mutual money pay the taxes, which they under no circumstances see on any assertion, whilst persons sell out). ETFs even have all the commerce regulations of shares so which you would be able to short them, commerce at any time and function stops (sell whilst the fee reaches a definite element). Mutual money are easily whilst human beings turn money over to a mutual fund operator which trades interior a assertion given out by utilising the operator. whilst a guy or woman needs to purchase or sell, they hve to attend till at last the fee on the tip of the day to nicely known how lots they offered. one won't be able to panic sell in the process the day which could make mutual fund holders preserving valueless holdings in some severe circumstances. 80% of mutual money have not crushed the SP 500 (an index, tracked by utilising ETFs which comprise secret agent) over the long term era even nevertheless those operators could make tens of millions by utilising skimming costs. some mutual money, called trackers, will music indexes like the SP 500 yet fee greater suitable than if one have been to very own the index. for this reason familiar and undesirable sells indexes masking the SP (hint S=familiar P=undesirable) 500. Returns can selection, by using selection ETFs available.
- 1 decade ago
Exchange-Traded Funds (ETF) Center - Yahoo! Finance
Learn about Exchange-Traded Funds, read ETF news, and see which ETFs are ... ETF Education ... Rolls Out Commodity-Based ETF. Diamond Futures, ETFs Might Be ...finance.yahoo.com/etf - 27k - Cached
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- Anonymous1 decade ago
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