The IPO market is really starting to heat up. We've seen three big IPOs in six weeks and the stock performance has been impressive. Now's the time to get up to speed.
What Are ETFs?
The term ETF is short for Exchange-Traded Fund – a security that tracks an index, commodity or basket of stocks. An ETF is somewhat similar to an index fund except that shares of an ETF trade just like a stock on a stock exchange, so they can be bought and sold very easily. ETFs are valuable investment tools because, unlike mutual funds, they can be traded throughout the course of a day.
Most ETFs track indexes. For example, the SPDR S&P 500 (NYSE: SPY) tracks the Standard & Poor’s 500, while PowerShares QQQ (NYSE: QQQ) tracks the Nasdaq-100.
ETFs can be appealing to investors for several reasons:
ETFs allow investors to sell short, buy on margin, and purchase as little as one share at a time
With lower management fees, ETFs are less expensive than mutual funds
ETFs can efficiently help diversify an investor’s portfolio
ETFs allow people to invest in a specific industry
ETF gains aren’t taxed as heavily as those earned through mutual funds
Downsides to ETFs are that, like stocks, they typically have to be bought through a broker; some countries have limited ETF markets; and they aren’t all necessarily designed for long-term investors. While not for everybody, ETFs are a good way for investors to diversify their portfolios at a low cost.
To browse through a comprehensive list of ETFs, visit Yahoo! Finance’s Exchange-Traded Fund Center.
By Ian Wyatt | Apr 14, 2017
It's a monumental development. The first cannabis stock ETF makes the entire sector more accessible to investors and will help increase demand and interest in pot stocks.
By Bob Ciura | Apr 7, 2017
U.S. companies are lining up to invest in India, and you may want to consider it too. India is one of the fastest-growing economies in the world.
By Moby Waller | Mar 16, 2017
These top performing ETFs, pure plays, are beating the market so far this year. Selecting the right and best-performing ETFs can certainly give you market-beating performance.
By Moby Waller | Mar 9, 2017
A Fed rate hike next week appears likely, but there's no need to tear out your hair. Take a look at other interest rate cycles for some perspective.
By Moby Waller | Feb 24, 2017
Though we've had a big run-up, I expect any pullbacks to be limited. The charts show an overwhelmingly bullish market trend.
By Andy Crowder | Feb 21, 2017
Step by step, learn how to evaluate a specific trade using one of my favorite options strategies, the bear call spread. It has the odds I like to see in a trade.
By Andy Crowder | Feb 20, 2017
Here is the best way to bring in income from options on a regular basis is by selling vertical call spreads and vertical put spreads, otherwise known as credit spreads.
By Ian Wyatt | Feb 4, 2017
Get ready for the IPO boom of 2017! Snapchat's $25 billion initial public offering could spark of wave of new filings this year.
By Moby Waller | Jan 10, 2017
Diversification is not just allocating among stocks, bonds, gold and other investments. Here's a better way. I'll show you how to diversify your portfolio with one simple ETF investment.