Complete Guide To Investment Companies, Funds And REITs

AAA

Mutual Funds Versus ETFs - Other Considerations

ETFs continue their innovation, offering active management and funds of funds (an ETF pursuing a strategy by investing in other ETFs). Some go further out along the risk continuum with the advent of synthetic ETFs, for which return comes from a swap rather than an index, ETNs (exchange traded notes), which hold fixed income, and ETVs (exchange traded vehicle), which are similar to ETNs but issued through a special purpose vehicle to gain access to more opaque markets; here counterparty risk exists. Finally, there are leveraged ETFs and inverse ETFs that track the opposite performance of an index, effectively making a directional bet. The aforementioned suite of products is best reserved for the more sophisticated risk-aware investor.

Related Reading:

Shortcomings

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    These Oil ETFs Offer Cheap, Easy Access

  2. Mutual Funds & ETFs

    Why Monthly Dividend ETFs are Good for ...

  3. Investing Basics

    The Strange New World Of The Bitcoin ...

  4. Stock Analysis

    Why REITs Remain A Great Place To Put ...

  5. Mutual Funds & ETFs

    Your Best Bet for Healthcare Stocks: ...

Trading Center