An ETF is a tradeable fund, containing many investments, generally organized around a strategy, theme, or exposure. That approach could be tracking a sector of the stock market, like technology or energy; investing in a specific type of bond, like high-yield or municipal; or tracking a mark...
When it comes to owning ETFs, a key element to consider is the Total Expense Ratio (TER), which represents the total cost of holding an ETF for one year. These costs consist primarily of management fees and additional fund expenses, such as trading fees, legal fees, auditor fees, and oth...
Leveraged ETFs.These ETFs also use futures and options contracts—which trade on margin (essentially borrowed money)—as a way of amplifying returns. For example, an ETF might target double (2x) or triple (3x) the daily return on the S&P 500 Index. But leverage is a double-edged sword. ...
Bond ETFs own fixed-income investments, such as corporate bonds and U.S. Treasurys. As index ETFs, most bond ETFs track bond market benchmarks like the Bloomberg U.S. Aggregate Bond Index. This type of ETF is particularly appealing for fixed-income investors because they typically pay divide...
Investing in REITs through a REIT ETF is a way for shareholders to engage with this sector without needing to personally contend with its complexities. How REIT ETFs Work Real estate investment trust (REIT)securities have traits of both equities and fixed income securities. Their high-dividend yie...
An exchange-traded fund (ETF) wrap is a type of special investment portfolio in which an investor—with or without the aid of an investment advisor—invests solely in ETFs. Common asset allocation models for ETF wrap fee programs are 100% equity, 100% fixed income, or a balanced model—bot...
Guide to fixed income investing with ETFs Start Guide to commodity ETFs Start The Best Emerging Market ETFs Start Guide to Active ETFs Start What is a Leveraged ETF? If you've ever been curious about investing in the stock market or exploring different investment options, you might have...
What Is an ETF? Exchange-traded funds (ETFs) are a basket of securities that track the performance of stock market benchmarks such as the Dow Jones Industrial Average or the S&P 500. ETFs trade just like stocks and bonds, which means investors can buy and sell shares throughout the tradin...
What is the difference between an ETF and a stock? How could fees and expense ratios affect returns? What other costs are involved in buying or selling a fund? What are the tax advantages to investing in ETFs? Want to learn more about ETFs? Whether you're looking to understand the basi...
Learn about some of the many ways ETFs can be used in a portfolio — from accessing hard-to-reach markets to implementing core-satellite strategies. March 12, 20247 min read An ETF Due Diligence Checklist Selecting an ETF can be time consuming and overwhelming. Utilize our ETF Due Diligence ...