FAQs about ETFs
Q: Are ETFs guaranteed or insured?
The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.
Q: Are ETFs only good for stocks?
No, they are very innovative and versatile. In fact, any liquid asset with a published index can be an ETF. There are ETFs for Bonds, Commodities, Emerging Market, Japanese Futures, Latin Top 50, Precious Metals, Basic Materials, Real Estate and a long list of others.
Q: Are there international ETFs?
There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.
Q: Do any ETFs try to beat the market?
A fund that currently beat the market by 2 or 3xs is an actively managed fund. These funds operationally are much more difficult to manage. However it is much simpler when all players in building an ETF know the details of stock investments. Actively managed funds are traditionally more secretive, mainly to shield themselves from eager parasitical resellers.
Q: Are there ETFs for the Dow Jones Industrials or S&P 500?
Of course, there are several different funds that track these indexes. It's important to keep in mind the S&P and Dow Jones stay in tact as their own indexes, and more than one fund can track an index through that fund groups license. Pick the fund, open up an account with a broker and start trading.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 23222
The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.
Q: Are ETFs only good for stocks?
No, they are very innovative and versatile. In fact, any liquid asset with a published index can be an ETF. There are ETFs for Bonds, Commodities, Emerging Market, Japanese Futures, Latin Top 50, Precious Metals, Basic Materials, Real Estate and a long list of others.
Q: Are there international ETFs?
There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.
Q: Do any ETFs try to beat the market?
A fund that currently beat the market by 2 or 3xs is an actively managed fund. These funds operationally are much more difficult to manage. However it is much simpler when all players in building an ETF know the details of stock investments. Actively managed funds are traditionally more secretive, mainly to shield themselves from eager parasitical resellers.
Q: Are there ETFs for the Dow Jones Industrials or S&P 500?
Of course, there are several different funds that track these indexes. It's important to keep in mind the S&P and Dow Jones stay in tact as their own indexes, and more than one fund can track an index through that fund groups license. Pick the fund, open up an account with a broker and start trading.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 23222
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posted by X - Men @ 6:26 AM
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