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About Exchange Traded Funds
Exchange-Traded Funds, or ETFs, are bought and sold just like stocks on major stock exchanges.
As an example, the Standard and Poor's 500 Index (S&P 500), is made up of the stocks of 500 individual companies.
To have a portfolio that imitates the S&P 500, an investor doesn't have to purchase the 500 stocks in this index.
That investor only needs to purchase shares of the stock/Exchange Traded Fund representing the S&P 500.
That stock has the symbol SPY.
All the major stock market indexes have Exchange Traded Funds that represent them:
- The Dow Jones Industrial Average [symbol DIA]
- Nasdaq Composite [symbol QQQQ]
There are also ETF's for Large Stocks, Small Stocks, Foreign Stock Markets, Real Estate, Bonds and so on.
- Exchange Traded Funds combine several investment strategies at once: Global Diversification, Value Investing, Growth Investing, to name just a few. Our models are designed to select the best of these strategies.
- The wide range of strategies offered by ETF's is boosted by the simple way they can be purchased by any investor through any broker.