- An Exchange-traded fund (ETF) tracks a stock, REIT, or bond, etc financial index.
- The ETF portfolio is similar to the component of the index it is tracking.
- The ETF is traded on an exchange just like any stocks.
- ETF price is a close reflection of the fund net asset value (NAV) rather than purely due to trading momentum.
- Examples are SPY, IVV & VOO track S&P 500 index, and QQQ tracks Nasdaq 100 index.
You can still make money from the stock market without knowing when or what stock to buy. Want to know how?
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