How do etfs work?

11th Dec 2009 by JonB

An ETF is a security that lets you take advantage of the appreciation and depreciation of a commodity, index or another related group of assets. For example, a real estate ETF may allow you to take advantage of the depreciation or appreciation of real estate prices without the risk of being invest in one company. An ETF offers investors a way to expose themselves to an entire industry, yet still be diversified within that industry. ETFs also are sueful to those who have very little to invest, or simply want to commit only a small amount of capital in a given area. It's important to note that ETFs trade just like stocks

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com