Common Questions about ETFs
Q: Are ETFs guaranteed or insured?
The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.
Q: Are ETFs only for stocks?
No, they are very innovative and versatile. In fact, any liquid asset with a published index can be an ETF. There are ETFs for Bonds, Commodities, Emerging Market, Japanese Futures, Latin Top 50, Precious Metals, Basic Materials, Real Estate and a long list of others.
Q: Are there international ETFs?
There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.
Q: Do any ETFs actually beat the market?
Currently actively managed funds are beating the market by 2 to 3xs. Operationally, these funds are much harder to manager. When building an ETF of this type it's much easier to make sure all players are aware of where stocks are being invested. Traditionally these funds are secretive, mainly to protect themselves from parasitical resellers.
Q: Are there ETFs for the Dow Jones
Industrials or S & P 500?
Besides the S&P 500 and Dow Jones there are several funds that track those indexes. One thing people have a hard time understanding is that when trading though an ETF index the Dow Jones and S&P 500 remain in tact as their own indexes, and using a certain group license more than one fund can track an index. Start trading by opening up an account with a broker and beginning today.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
That is highly doubtful. Assets of ETFs totaled $656.91 billion by the end of 2009. During the past several years there has been a steady growth in ETFs with no decline. Traditional mutual funds haven't seen near the same growth. - 23311
The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.
Q: Are ETFs only for stocks?
No, they are very innovative and versatile. In fact, any liquid asset with a published index can be an ETF. There are ETFs for Bonds, Commodities, Emerging Market, Japanese Futures, Latin Top 50, Precious Metals, Basic Materials, Real Estate and a long list of others.
Q: Are there international ETFs?
There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.
Q: Do any ETFs actually beat the market?
Currently actively managed funds are beating the market by 2 to 3xs. Operationally, these funds are much harder to manager. When building an ETF of this type it's much easier to make sure all players are aware of where stocks are being invested. Traditionally these funds are secretive, mainly to protect themselves from parasitical resellers.
Q: Are there ETFs for the Dow Jones
Industrials or S & P 500?
Besides the S&P 500 and Dow Jones there are several funds that track those indexes. One thing people have a hard time understanding is that when trading though an ETF index the Dow Jones and S&P 500 remain in tact as their own indexes, and using a certain group license more than one fund can track an index. Start trading by opening up an account with a broker and beginning today.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
That is highly doubtful. Assets of ETFs totaled $656.91 billion by the end of 2009. During the past several years there has been a steady growth in ETFs with no decline. Traditional mutual funds haven't seen near the same growth. - 23311
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Black Sand trading is an online stock trading tool that indicates to online traders where and how to invest their money. Black Sand's clients have consistently achieved a 53% or greater ROI over the past seven years following Black Sand's signal. For more information about trading and using Black Sand Trading visit our website.
posted by Mr. Forex at
4:35 AM
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