Are ETFs Guaranteed or Insured?
The risk of the underlying asset is quite another matter. Each asset class must be examined separately, and risk profiles of assets may change over time. Stocks are clearly risky, and ones in technology or emerging markets particularly so. Long-term bonds and real estate are also risky in their own way. Short-term investment grade bonds,…
Difference from ETF and IMF?
IMF (Index mutual funds) also track baskets of securities. Unlike index funds, which are priced once after the end of each trading session, ETF (Exchange-traded funds) prices changes throughout the day because they’re traded like shares. Like shares, they can also be sold short — a bet that the index value will decline — and…
What is an ETF (Exchange-traded fund) and how it works?
ETF (Exchange-Traded Fund), is an investment product representing a basket of securities that track an index such as the Standard & Poor’s 500 Index. ETFs, which are available to individual investors only through brokers and advisers, they trade stocks on an exchange. In theory all that a fund manager needs to do is establish clear…