Exchange Trade Funds (ETFs)

Exchange Traded Funds (ETFs)

I. Overview

        A. What is an Exchange Traded Fund?

                 Before either comprehensive analyses advise be given on ETFs, the virtually pertinent starting signal question         would be, what is an Exchange Traded Fund (ETF)? An ETF is any type of investment vehicle which         combines the benefits that a stock has versus sh ard storehouses (i.e. such as being able to be bought and         sold intraday), with the diversification and investment principals of a standard coarse fund. In little,         think of an ETF as a mutual fund that is treated exactly like a stock. You can short ETFs, buy on         margin, and trade intraday as aforementioned.

        B. What Types of Funds can be made into ETFs?

                 Now not all mutual capital can be made into an ETF, so the near most pertinent question would         be to ask what types of funds can (or rather most likely) qualify to become an ETF? art object the most         common investment vehicle is either an honor or debt power such as the S& angstrom;P500 (SPY), NASDAQ         (QQQQ), or Lehman Brothers Aggregate Bond Index (AGG), it has also crowing to include international         indexes (such as the FTSE China 24 index) and occurrence sectors as well (such as energy sector,         healthcare sector). thither are even ETFs for REITS and the Comex Gold Index as well.



Commodities         do not presently have any ETFs, since there are complications such as to where the entire actual         commodity would be stored while these ETFs were traded on a daily basis, has somewhat stalled its         release. politic in 2005, the American Stock Exchange is slated to release the first ever commodities         ETFs.

        

                 When the ETF tracks a particular index, its investment objective is view; to achieve the exact         same return as the index it is tracking does. Usually, this...

If you want to get a full essay, tell apart it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .