Exchange Traded Funds or ETFs are America’s fastest growing way to invest. Why the enthusiasm?
Category: Investor Center
ETFs are a better way to invest. Often described as a cross between mutual funds and stocks, almost all ETFs are a basket of at least 20 stocks that track a professionally designed index.
ETFs are designed and marketed by large financial sponsors such as State Street or Barclays. Like many mutual funds, ETFs are open ended meaning that they have no fixed number of shares.
If you are considering ETFs, you should be aware of the pros and cons of ETF investing. For the typical investor, ETFs line up very well with the fundamentals of good investing. They are diversified, low cost and tax efficient.
ETFs are right for almost every investor situation and goal. Income investors have a wide variety of current income producing ETFs to choose from.
You buy an ETF the same way that you buy a stock. When the stock market is open, you enter an order with your broker at either a market or limit price and pay the appropriate commission.
Interested in learning more about ETFs? Visit ETF MarketPro’s Education Center to find out about webinars, club events, study-at-home programs and the ETF Investor Newsletter.
ETF MarketPro provides 5 ways to find the ETFs that are of interest to you.
The ETF directory provides a comprehensive guide to exchange traded funds or ETFs. In total, the ETF list includes 800+ exchange traded funds and more are coming to market every month.
Investors don’t always think about investing opportunities the same way that ETF sponsors describe them. Wall Street uses complex terms and acronyms like Market Cap, EAFE, sector rotation and tracking error to describe ETFs.