ETF Trend Trading System - What Are ETFs?

ETF Trend Trading System - What Are ETFs?ETF Trend Trading System - What Are ETFs?Author: Jasper FowlerIf you're looking for flexible investment vehicles that you manipulate within your portfolio such as stocks, bonds, futures you should pay very close attention to ETF's. Unarguably ETF stands for exchange traded fund, an ETF holds assets like bonds and stocks and its net worth is equal to that of the negotiable instrument it holds ; an ETF may also be considered as an investment portfolio that holds stocks and bonds or other debatable instruments that are traded on a stock exchange which is very similar to the way that stocks are traded. the most important difference between stocks and ETF's ( besides that an ETF is a portfolio of bonds or stocks ) is that an exchange traded fund tracks and index therefore the reason why they are called index funds. There are plenty of indexes that may be tracked thru ETF's, a backer may choose to track and index for it to DJX, NDX, a specific industry such as the producing industry where they may choose to track and index of a developing market, these markets can be in different countries so much like stocks and financier can also buy an ETF which tracks a selected index of an industry which thrives in different states across the world. The entire ETF idea has been around for about fifteen years and first to hit the market did it in 1993 and was better known as'spiders' -- ETF symbol was SPDRs, this ETF in particular tracked the Standard and Poor's five hundred index of large-company stocks.

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