Exchange-Traded Funds: Conclusion
AAA
  1. Exchange-Traded Funds: Introduction
  2. Exchange-Traded Funds: Background
  3. Exchange-Traded Funds: Features
  4. Exchange-Traded Funds: SPDR S&P 500 ETF
  5. Exchange-Traded Funds: Active Vs. Passive Investing
  6. Exchange-Traded Funds: Index Funds Vs. ETFs
  7. Exchange-Traded Funds: Equity ETFs
  8. Exchange-Traded Funds: Fixed-Income and Asset-Allocation ETFs
  9. Exchange-Traded Funds: ETF Alternative Investments
  10. Exchange-Traded Funds: ETF Investment Strategies
  11. Exchange-Traded Funds: Conclusion

Exchange-Traded Funds: Conclusion

Although the first exchange-traded funds (ETFs) were designed to track broad market stock indexes, since that time, ETFs have been developed to track industrial sectors, investment styles, fixed income, global investments, commodities and currencies. ETFs are now available to replicate just about any index available. All that is required is that there is enough investor interest to make the ETF profitable.

An ETF trades like a stock on a stock exchange. However, like a mutual fund, the ETF has a structure that pools the assets of its investors and uses professional money managers to invest the money. Unlike most mutual funds, which are actively managed, most ETFs are passively managed. An ETF most resembles an index fund that tracks the same index and its performance should closely mirror the index it tracks.

An investor who wants to buy ETFs has a myriad of options to choose from in equities, foreign stocks, fixed income and alternative investment. There are also many different strategies the investor can employ when using ETFs. Like other investments, it is important for the investor to evaluate the different options to ensure the right ETF is chosen for the job.


  1. Exchange-Traded Funds: Introduction
  2. Exchange-Traded Funds: Background
  3. Exchange-Traded Funds: Features
  4. Exchange-Traded Funds: SPDR S&P 500 ETF
  5. Exchange-Traded Funds: Active Vs. Passive Investing
  6. Exchange-Traded Funds: Index Funds Vs. ETFs
  7. Exchange-Traded Funds: Equity ETFs
  8. Exchange-Traded Funds: Fixed-Income and Asset-Allocation ETFs
  9. Exchange-Traded Funds: ETF Alternative Investments
  10. Exchange-Traded Funds: ETF Investment Strategies
  11. Exchange-Traded Funds: Conclusion
RELATED TERMS
  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  4. Historic Pricing

    A method for calculating the value of an asset using the last ...
  5. Lion economies

    A nickname given to Africa's growing economies.
  6. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  1. How are new exchange traded funds (ETFs) created?

    Read about how exchange-traded funds are proposed to the SEC, created with underlying assets, sold to authorized participants ...
  2. How can I profit from a fall in stock prices of companies in the financial services ...

    Learn about the different methods successful investors use to profit by trading in the financial services sector, even when ...
  3. How can I invest in credit card companies?

    Learn about the different ways to invest in credit card company stock as well as the advantages and drawbacks of each investment ...
  4. What ETFs should I buy to track the utilities sector?

    Selecting utilities sector company stocks can be a challenge for investors, but utilizing an ETF that tracks a utilities ...

You May Also Like

Related Tutorials
  1. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  2. Economics

    American Depositary Receipt Basics

  3. Investing Basics

    Stock Basics Tutorial

  4. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  5. Retirement

    Analyzing The Best Retirement Plans And Investment Options

Trading Center