For example, if an ETF held 100 stocks, then those who owned the fund would own a stake — a very tiny one — in each of those 100 stocks. ETFs are typically passively managed, meaning that the fund usually holds a fixed number of securities based on a specific preset index of ...
ETFs are usually managed by experienced fund managers. Most ETFs are index funds, meaning they track an index such as theS&P 500. With index funds, the fund manager doesn't make a lot of decisions about which assets to buy and sell, but they make sure the fund doesn't stray far from ...
The liquidity premium refers to the additional return investors demand for holding a relatively less liquid asset. It's a concept mainly used in the bond world because markets tend to contain more similar assets, meaning you can better isolate the liquidity factor when comparing two assets. Still...
Please note that the aforementioned smallcases are for informational purposes only and are not recommendatory. smallcase portfolios are built using a rule-based approach, meaning each portfolio’s stock/ETF list is chosen based on specific criteria and underlying strategy. These criteria could include...
This leveraged ETF depends on the performance of several companies and is well diversified. Single-stock ETFs do not offer the same diversification. A single-stock ETF only contains one stock, meaning your gains and losses depend on one asset's performance. You can buy multiple single-stock ...
do not offer the same. A single-stock ETF only contains one stock, meaning your gains and losses depend on one asset's performance. You can buy multiple single-stock ETFs that each hold a different company, but you don't get instant diversification from holding onto one single-s...
If you have no open positions, meaning no unrealized gains or losses, your start-of-day equity is likely to be the same as your previous day's end-of-day equity. If you have open positions, either unrealized gains or losses, your opening equity will depend on how your positions are "...
What is an index fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that aims to mimic the performance of a certain index. (Psst ... an index is a group of different investments, often bundled together because they have something in common.) You can’t invest...
One of the primary reasons investors are drawn to preferred stock is the relatively high and consistent dividend payments. Preferred stock dividends are typically fixed, meaning they are set at the time of issuance and remain the same over the life of the security, unless the terms speci...
With a very low 0.04% expense ratio (meaning you pay 40 cents annually per $1,000 invested), it requires a $3,000 minimum investment. Since its launch half a century ago, the fund has returned an average of about 8.27% annually.10 ...