Q: Can ETFs be guaranteed or insured?
The government agency, The Depository Trust Clearing Corporation, which ensures stock certificates are delivered to the person who bought them also, makes sure all ETF certificates in a trade are assigned correctly. Furthermore the SEC examines all applications to create an ETF. Risk of abuse is very low.
Q: Are ETFs only good 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: Do other countries also have 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 try to beat the market?
A fund that currently beat the market by 2 or 3xs is an actively managed fund. These funds operationally are much more difficult to manage. However it is much simpler when all players in building an ETF know the details of stock investments. Actively managed funds are traditionally more secretive, mainly to shield themselves from eager parasitical resellers.
Q: Are there ETFs for the Dow Jones
Industrials or S & P 500?
Yes, several funds track these indexes. Remember the Dow Jones and S&P 500 stay in tact as their own indexes, but more than just one single fund can track an index by securing the appropriate group license. Open up an account with a broker and begin trading.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 32163
The government agency, The Depository Trust Clearing Corporation, which ensures stock certificates are delivered to the person who bought them also, makes sure all ETF certificates in a trade are assigned correctly. Furthermore the SEC examines all applications to create an ETF. Risk of abuse is very low.
Q: Are ETFs only good 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: Do other countries also have 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 try to beat the market?
A fund that currently beat the market by 2 or 3xs is an actively managed fund. These funds operationally are much more difficult to manage. However it is much simpler when all players in building an ETF know the details of stock investments. Actively managed funds are traditionally more secretive, mainly to shield themselves from eager parasitical resellers.
Q: Are there ETFs for the Dow Jones
Industrials or S & P 500?
Yes, several funds track these indexes. Remember the Dow Jones and S&P 500 stay in tact as their own indexes, but more than just one single fund can track an index by securing the appropriate group license. Open up an account with a broker and begin trading.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 32163
About the Author:
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.
