What you should know more about Exchange-Traded Fund (ETF)

 
 
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CENTRAL DISTRICT, Hong Kong - Feb. 11, 2020 - PRLog -- What Is an ETF?

ETF which means Exchange-Traded-Fund is a security fund that involves collections of securities that tracks underlying index like investment stocks. You may categorically compare ETF with Mutual Fund (MF) because they are similar in a way; however ETFs can be trade through stock market while Mutual Fund is not..

ETFs can be bought through major investments program like stocks, commodities or bonds. It has an associated price which makes it a marketable security that allows investor to trade it easily.

Key Takeaways

A stock like investment fund, exchange-traded-fund is a basket of securities which you can trade on exchanges. Like in a stock market… ETFs price fluctuate every time it is bought and sold throughout the trading day.

It contains all types of investments such as stocks, bonds and/or commodities, while others is offered locally, some is offered internationally.

Why ETF is a good catch compare to other investment plan? It offers low expense rate and fewer broker commissions than individual buying of stock.

Unlike Mutual Fund that can be trade once per day after the market close, ETFs price per share varies throughout the trading day.

Since ETF includes multiple assets in one holding, it is one of the best choices of clients for diversification. Rather than trading just one stock in a market, you can go on an ETF which holds multiple underlying assets.

A single ETF fund can own not just hundreds but thousands of stocks across various industries, but it can also be secluded in particular industry or sector base on clients preference. Some funds only focus on local offers while others is offered worldwide. Example, Banking-focused ETFs contains various banks stocks across the industry.

Types of ETFs

There are loads of ETFs a client can invest into that can be used to gain more income and diversify assets for longer or shorter term.Below are the most talked about types of Exchange-Trade-Funds.

· Bond ETFs might include government, corporate, state and local bonds—called municipal bonds.
· Industry ETFs track a particular industry such as technology, banking, or the oil and gas sector.
· Commodity ETFs invest in commodities including crude oil or gold.
· Currency ETFs invest in foreign currencies such as the Euro or Canadian dollar.
· Inverse ETFs attempt to earn gains from stock declines by shorting stocks. Shorting is selling a stock, expecting a decline in value, and repurchasing it at a lower price.

ETFs are just one of the investment specialties of Investam HK both locally and globally. We have a wide range of ideas we can propose to set for any investors. For more details, do contact us.. https://investam-hk.com/

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Page Updated Last on: Feb 11, 2020
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