What is ETF (Exchange Traded Fund) ?
What are the differences between Stock and ETF?
Re: ETF
ETFs are basically glorified mutual funds, with the expense ratio usually being smaller than that of a mutual fund - because the assets held under an ETF are not actively managed.
Re: ETF
In other words, ETFs are like index mutual Funds. Except mutual funds are priced only at the end of the day. So if u sell 100 shares u will get whatever price it closes at. ETFs can be traded like stocks all day long.
ETFs are touted as having lower expense ratio than their index fund counterparts. (And index funds r cheaper than standard actively managed mutual funds).
But the touters fail to mention u pay commission on each trade for etfs. While mutual funds don't have trading fee.
Re: ETF
Having said that, ETFS can serve a good proxy for individual.s5ocks in ur stock portfolio. After the financial crisis I simply picked up vfh and xlf. Since I had no clue which banks would do well. But I had a good idea that for financials as a group, the path of least resistance was uo.
(Of course prior to that I was llangotless buying financial in 2007 late.
Re: ETF
Thank you.