Q: Can ETFs be guaranteed or insured?
The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.
Q: Are ETFs only for stocks?
No. A liquid asset of any class with a published index can turned into an ETF. There are ETFs for Bonds, Real Estate, Precious Metals, Basic Material, Emerging Markets, Japanese Futures, Top Latin 50, Foreign Currency, Commodities, and many others.
Q: Are there international ETFs?
There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.
Q: Do any ETFs actually beat the market?
Currently actively managed funds are beating the market by 2 to 3xs. Operationally, these funds are much harder to manager. When building an ETF of this type it's much easier to make sure all players are aware of where stocks are being invested. Traditionally these funds are secretive, mainly to protect themselves from parasitical resellers.
Q: Are there ETFs for the Dow Jones Industrials or S&P 500?
Yes, several funds track these indexes. Remember the Dow Jones and S&P 500 stay in tact as their own indexes, but more than just one single fund can track an index by securing the appropriate group license. Open up an account with a broker and begin trading.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 23309
The Depository Clearing Corporation, a government agency, which ensure sock certificates purchased are delivered to the purchaser and assigned to the same. Anytime a new ETF is created, the SEC is sure to review and examine every application. Chances of abuse have been very low.
Q: Are ETFs only for stocks?
No. A liquid asset of any class with a published index can turned into an ETF. There are ETFs for Bonds, Real Estate, Precious Metals, Basic Material, Emerging Markets, Japanese Futures, Top Latin 50, Foreign Currency, Commodities, and many others.
Q: Are there international ETFs?
There are many international ETFs. From Europe to the Pacific Rim, most developed countries have them. Countries around the globe will adopt ETFs as their countries gain economic and political stability.
Q: Do any ETFs actually beat the market?
Currently actively managed funds are beating the market by 2 to 3xs. Operationally, these funds are much harder to manager. When building an ETF of this type it's much easier to make sure all players are aware of where stocks are being invested. Traditionally these funds are secretive, mainly to protect themselves from parasitical resellers.
Q: Are there ETFs for the Dow Jones Industrials or S&P 500?
Yes, several funds track these indexes. Remember the Dow Jones and S&P 500 stay in tact as their own indexes, but more than just one single fund can track an index by securing the appropriate group license. Open up an account with a broker and begin trading.
Q: Could ETFs possibly be a fly-by-the-night trend or fad?
This is highly unlikely. At years end 2009 assets of exchange traded funds totaled $656.91 billion. In fact year over year during the past several years they have had steady growth with no decline. Much faster than traditional mutual funds. - 23309
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