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What are etf stocks
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3rd Dec 2009 by Gary
Technically an ETF or EXchange-Traded Fund isn't a stock, but does trade in the same way a stock does, and is listed on exchanges. An ETF is made to track a variety of securities, and can include whatever the particular focus of the fund is. For example, there are gold ETFs, silver ETFs, etc. Because they are tracking devices, there is little need for great oversight, so management costs are low, and so are passed on to the investers, which makes them cheaper to invest in from that standpoint. But not only that, an ETF includes the type of strength of diversification an index fund gets, but has the added value of being able to buy as little as one share, or to buy on margin or sell short. So they are much more versatile than an index fund, but there are of course risks associated with that versatility as well.
Technically an ETF or EXchange-Traded Fund isn't a stock, but does trade in the same way a stock does, and is listed on exchanges. An ETF is made to track a variety of securities, and can include whatever the particular focus of the fund is. For example, there are gold ETFs, silver ETFs, etc. Because they are tracking devices, there is little need for great oversight, so management costs are low, and so are passed on to the investers, which makes them cheaper to invest in from that standpoint. But not only that, an ETF includes the type of strength of diversification an index fund gets, but has the added value of being able to buy as little as one share, or to buy on margin or sell short. So they are much more versatile than an index fund, but there are of course risks associated with that versatility as well.
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19th Oct 2009 In Stocks
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