FAQs about ETFs
Q: Are ETFs guaranteed or insured?
The government agency, The Depository Trust Clearing Corporation, which ensures stock certificates are delivered to the person who bought them also, makes sure all ETF certificates in a trade are assigned correctly. Furthermore the SEC examines all applications to create an ETF. Risk of abuse is very low.
Q: Are ETFs only for stocks?
No. A liquid asset of any class with a published index can turned into an ETF. There are ETFs for Bonds, Real Estate, Precious Metals, Basic Material, Emerging Markets, Japanese Futures, Top Latin 50, Foreign Currency, Commodities, and many others.
Q: Are there international ETFs?
Yes there are. Most developed countries have them including countries in Europe and across the Pacific Rim. ETFs will gain popularity in most countries in the world as there is greater economic and political stability.
Q: Do any ETFs actually beat the market?
Currently actively managed funds are beating the market by 2 to 3xs. Operationally, these funds are much harder to manager. When building an ETF of this type it's much easier to make sure all players are aware of where stocks are being invested. Traditionally these funds are secretive, mainly to protect themselves from parasitical resellers.
Q: Do ETFs exist for the Dow Jones Industrials or S&P 500?
Besides the S&P 500 and Dow Jones there are several funds that track those indexes. One thing people have a hard time understanding is that when trading though an ETF index the Dow Jones and S&P 500 remain in tact as their own indexes, and using a certain group license more than one fund can track an index. Start trading by opening up an account with a broker and beginning today.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
That is highly doubtful. Assets of ETFs totaled $656.91 billion by the end of 2009. During the past several years there has been a steady growth in ETFs with no decline. Traditional mutual funds haven't seen near the same growth. - 23204
The government agency, The Depository Trust Clearing Corporation, which ensures stock certificates are delivered to the person who bought them also, makes sure all ETF certificates in a trade are assigned correctly. Furthermore the SEC examines all applications to create an ETF. Risk of abuse is very low.
Q: Are ETFs only for stocks?
No. A liquid asset of any class with a published index can turned into an ETF. There are ETFs for Bonds, Real Estate, Precious Metals, Basic Material, Emerging Markets, Japanese Futures, Top Latin 50, Foreign Currency, Commodities, and many others.
Q: Are there international ETFs?
Yes there are. Most developed countries have them including countries in Europe and across the Pacific Rim. ETFs will gain popularity in most countries in the world as there is greater economic and political stability.
Q: Do any ETFs actually beat the market?
Currently actively managed funds are beating the market by 2 to 3xs. Operationally, these funds are much harder to manager. When building an ETF of this type it's much easier to make sure all players are aware of where stocks are being invested. Traditionally these funds are secretive, mainly to protect themselves from parasitical resellers.
Q: Do ETFs exist for the Dow Jones Industrials or S&P 500?
Besides the S&P 500 and Dow Jones there are several funds that track those indexes. One thing people have a hard time understanding is that when trading though an ETF index the Dow Jones and S&P 500 remain in tact as their own indexes, and using a certain group license more than one fund can track an index. Start trading by opening up an account with a broker and beginning today.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
That is highly doubtful. Assets of ETFs totaled $656.91 billion by the end of 2009. During the past several years there has been a steady growth in ETFs with no decline. Traditional mutual funds haven't seen near the same growth. - 23204
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Black Sand trading is an online stock trading tool that indicates to online traders where and how to invest their money. Black Sand's clients have consistently achieved a 53% or greater ROI over the past seven years following Black Sand's signal. For more information about trading and using Black Sand Trading visit our website.
posted by X - Men @ 4:47 AM
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