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Are ETFs safe?
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12th Nov 2009 by Gary
ETFs are as safe as the particular security or commodity they're tracking. What an exchange-traded fund does is put together a group of securities in order to track a specific index. So, again, they're as safe as what they are tracking. Because an ETF trades in the same way as a stock share, prices can fluctuate throughout the day just like a regular stock price does. One advantage to investing through an ETF is the lower fees because of little need of management, because they are used for tracking rather than needing research. Like any other investment, the safety of an ETF is related to what sector is being tracked. Individual investors are only allowed to invest in an ETF through a broker of financial adviser.
ETFs are as safe as the particular security or commodity they're tracking. What an exchange-traded fund does is put together a group of securities in order to track a specific index. So, again, they're as safe as what they are tracking. Because an ETF trades in the same way as a stock share, prices can fluctuate throughout the day just like a regular stock price does. One advantage to investing through an ETF is the lower fees because of little need of management, because they are used for tracking rather than needing research. Like any other investment, the safety of an ETF is related to what sector is being tracked. Individual investors are only allowed to invest in an ETF through a broker of financial adviser.
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11th Nov 2009 In Exchange Traded Funds
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Subjects: etfs,