Exchanged-Traded Funds (ETFs)

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What are Exchange-Traded Funds (ETFs)?

Funds are an easy way to invest in a pool of different companies all at once. Exchange Traded Funds (ETFs) are funds that you can buy shares of in the stock market. Different ETFs have different investment strategies. There are ETFs that focus on different sectors like technology, finance or even social impact. When investing in an ETF, the value of your investment will depend on how the group of companies is doing. One famous ETF is SPDR, which tracks the US S&P 500. It is the largest ETF with assets of more than US$250 billion.

Why you should invest in ETFs

ETFs allow you access to a variety of asset classes or individual sectors of the U.S. market with the ease of trading a single security. For example, instead of buying a huge number of individual US technology stocks, you can invest in the US technology sector with a single ETF, such as the Dow Jones U.S. Technology ETF.

 

Investors should consider the investment objectives, risks, and charges and expenses of an Exchange Traded Fund (“ETF”) carefully before investing. Before investing in any ETF, you should consider its investment objective, risks, charges and expenses. Contact us at support@passfolioapp.com for a prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange-traded products are not designed for buy and hold investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.

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