1.

Explain What Are Etf’s? What Is The Advantage Of It?

Answer»

ETF’s ( Exchange traded FUNDS) are funds that track the indexes like NASDAQ, DOW JONES, S&P five hundred and so on. In other words, it’s a mutual fund that trades like stock.

The advantage of using ETF is that

  • You get the diversification of an index
  • Ability to sell, short, buy on margin and purchase as little as one SHARE
  • You have to pay the same commission to your broker as you pay for regular ORDER
  • The expense ratios for most ETF’s are LOWER than the average mutual fund

ETF’s ( Exchange traded funds) are funds that track the indexes like NASDAQ, DOW JONES, S&P five hundred and so on. In other words, it’s a mutual fund that trades like stock.

The advantage of using ETF is that


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