Trading Exchange-Traded Funds (ETFs)
Exchange-traded funds or ETF are traded just like the stocks. They are funds traded in exchanged like the stocks. Traders can buy them, hold them and sell them when ever they want. ETF have same set up like the mutual funds but with the ever changing net-asset value; the net-asset value (NAV) of mutual funds are calculated on daily basis.
Most of the ETF are based on indexes of different stock exchanges, Like Spiders (SPDRs) for S&P 500 index and Cubes (QQQQ) for Nasdaq 100 index. Sector wise or industry wise ETFs are also available for trading which are based on different sector wise indices of exchanges like Vanguard’s Health Care Viper for Health Care Sector stock index. Other major types includes those based on indices of large cap, mid-cap and small-cap stocks, value stocks, growth stocks, foreign country exchanges, metals etc.
Now there is a marked surge in the number of ETF fund traded in various exchanges. Currently there are more then 400 ETF funds available for trading. But note that like stocks ETFs requires exchange listing and thus its hard to find all under one umbrella. Trading Exchange-traded funds is an excellent method to diversify your portfolio. Trading ETFs includes much less fee than of mutual funds and the brokerage rates for trading ETF are usually similar to stocks.
Most of the ETF are based on indexes of different stock exchanges, Like Spiders (SPDRs) for S&P 500 index and Cubes (QQQQ) for Nasdaq 100 index. Sector wise or industry wise ETFs are also available for trading which are based on different sector wise indices of exchanges like Vanguard’s Health Care Viper for Health Care Sector stock index. Other major types includes those based on indices of large cap, mid-cap and small-cap stocks, value stocks, growth stocks, foreign country exchanges, metals etc.
Now there is a marked surge in the number of ETF fund traded in various exchanges. Currently there are more then 400 ETF funds available for trading. But note that like stocks ETFs requires exchange listing and thus its hard to find all under one umbrella. Trading Exchange-traded funds is an excellent method to diversify your portfolio. Trading ETFs includes much less fee than of mutual funds and the brokerage rates for trading ETF are usually similar to stocks.
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posted by NobleTrading at
4:24 AM
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