Introduction to ETFs
Exchange Traded Funds or ETFs are America’s fastest growing way to invest. Why the enthusiasm?
Exchange Traded Funds or ETFs are America’s fastest growing way to invest. Why the enthusiasm?
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.