Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Exchange Traded Funds Primer > NetSparsh - Viral Content you Love & Share

Exchange Traded Funds Primer

Exchange Traded Funds (ETFs) are a group of passive index funds that trade on an exchange like an individual stock. At the time of writing there are 162 ETFs with $220 billion in assets under management trading on U.S. exchanges.

ETFs hold a basket of securities that mimic the results of various indices including broad stock and bond market, industry sectors, and international securities. New niche funds are being created regularly. Recent introductions include gold and China funds, and there are rumors that a silver ETF will soon be available.

The most popular ETF is the NASDAQ 100 Tracking Stock (QQQQ) trading 50 million shares a day on the NASDAQ Stock Market. The volume leaders on the American Stock Exchange are the SPDRS (SPY) tracking the S&P 500 trading 25 million shares per day, the Energy SPDR (XLE), Japan iShares (EWJ), Russell 2000 iShares (IWM), and the Financial SPDR (XLF).

ETFs are widely used by institutional and individual investors as a tool for diversification, risk reduction, hedging, and an efficient way to acquire a basket of securities providing partial ownership in all holdings with only a single commission and small administration fees. ETFs are also transparent, meaning that investors know at all times what securities they are invested in.

There are now also options and futures contracts trading on of ETFs. The Chicago Board Options Exchange (CBOE) lists 43 options on ETFs, while the Chicago Mercantile Exchange (CME) offers futures contracts on the S&P 500 Depository Receipts, NASDAQ 100 Tracking Stock, and Russell 2000 Index Fund. And One Chicago, a joint venture between the CBOE, CME, and Chicago Board of Trade (CBOT), offers an electronically traded futures contract on the DIAMONDS Dow Jones Industrial Average ETF.

There are also a number of web sites offering information on Exchange Traded Funds. Check out Amex.com, Yahoo! Finance's ETF Center, ETFConnect, or ETFera.com. Meanwhile, investment research firm Morningstar compares the fair value estimates to market prices of exchange traded funds holdings to determine whether a fund is over or undervalued.

Exchange Traded Fund's low costs, liquidity, and diversification make them an excellent alternative to mutual funds, broad based index investments, and individual stocks in niche sectors.

Mark Mahorney is the owner of Cofishop Media Group located in Keystone, CO. Cofishop is a diverse marketing services organization and online content syndicator of a suite of financial sites. Mark has been a contributing author to The Motley Fool and published in numerous leading financial publications.

Mark inks The Market Speculator newsletter, a hedged approach to market profits for individual investors. You can also read his scrawls, scribbles, rambles, and rants on the markets and whatever other ilk gets his ire at BlogginWallStreet.com and Marketblog.com.

MarketSpectator.com: Profit in the calm, protect in the storm
BlogginWallStreet.com: What really moves the markets
MarketBlog.com: Market missives and more

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Opinion: This is the ideal time frame to own a 'momentum' stock
MarketWatch
They're referring to the period of time over which they measure performance, which in turn enables them to determine which stocks or mutual funds they should buy and the low-momentum issues they should shun. Surprisingly few investors ever stop to ...


What you think you know about investing can hurt you
MarketWatch
Intuition is no substitute for the verifiable information you need to make smart decisions, or to be confident in the professionals you entrust to give you financial advice or run your mutual funds. The rules of investing haven't been revised ...


Wall Street Journal

Three Small-Stock Funds Investors Should Consider
Wall Street Journal
Small-capitalization stocks are standing tall. For fund investors who are seeking exposure to the sector, the question now is which mutual fund or exchange-traded fund might make the most sense.


Investor's Business Daily

Which Stocks Are The Best Mutual Funds Buying? Here's The List
Investor's Business Daily
Over the last three months, the best mutual funds have been buying shares in medical stocks like Abiomed (ABMD), Boston Scientific (BSX) and UnitedHealth (UNH). They've also continued to go shopping for retailers like Macy's (M), Dollar General (DG ...


Investor's Business Daily

Investing In Growth Stocks Like Veeva Powers This Top Mutual Fund To Outperformance
Investor's Business Daily
Federated Kaufmann Small Cap Fund owes much of its success in investing in growth stocks to great team work. And this top-performing mutual fund's team is bigger than most funds' — big enough to field a baseball team. The $1.5 billion Federated ...


Kiplinger's Personal Finance

12 Great Low-Fee Stock Funds
Kiplinger's Personal Finance
That's why Kiplinger prefers mutual funds with solid long-term records – and managers with tenures to match. Also, we prefer funds with below-average volatility for their category, and we keep a close eye on a fund's size because a gargantuan asset ...


Business Insider

GOLDMAN SACHS: Big-money investors are dominating the market with the help of 10 stocks — here's the list and ...
Business Insider
Ten stocks contributed to more than 100% of the S&P 500's returns in the first half of the year, according to Goldman Sachs. The list is full of growth stocks, to which mutual-fund managers have been well exposed. In an unusual overlap, many growth ...

and more »

Investorplace.com

7 Low-Risk Mutual Funds to Buy Now – FCONX, VIPSX, VEIPX ...
Investorplace.com
An array of low-risk mutual funds spanning multiple asset classes are currently available to investors. If you're looking to add some to your portfolio, here are 7 ...

and more »

Bloomberg

China's Yuan Stabilizes After Rocky Morning, Stocks Rebound
Bloomberg
Analysts said a 21st Century Business Herald report that mutual funds will be allowed to buy non-standard products helped drive the moves. The news boosted risk appetite as previous expectations were for China to ban the buying of such products, said ...

and more »

Zacks.com

3 Best Nuveen Mutual Funds to Add to Your Portfolio
Zacks.com
With nearly $967 billion in assets under management as of Mar 31, 2018, Nuveen Investments manages a wide range of mutual funds, including both equity and fixed income funds, and domestic and foreign funds. Founded in 1898 by John Nuveen, the ...

and more »
Google News

How Covered Calls Turned a Trader Around

Sidney felt sick as she looked at her latest OptionsXpress... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

Cash

How many people went to a cash position this week?... Read More

Bad News is Good News

For weeks, no, months we have been bombarded with nothing... Read More

Understanding Stock Market Indexes

A stock market index is a statistical measure of changes... Read More

VooDoo Training For the Stock Market

If you go to Haiti or other places in the... Read More

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

Mutual Fund Commissions

You have heard about a particular mutual fund from a... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

Discipline

One of the great "secrets" of successful people is discipline... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

Your Job

There are so many kinds of work that needs to... Read More

Stealth Bull

If you have been watching the stock market at all... Read More

How to Read an Annual Report

Every publicly traded company is required by the SEC(Securities and... Read More

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

The Stock Market - Part 1: Believe It Or Not, Its Always Been Your Best Friend And Always Will Be

Regardless of the fact that the world's stock markets have... Read More

Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More