Alcoa will kick off the first quarter earnings season tomorrow after the closing bell, but next week is all about financials.
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 Kent Thune | Apr 6, 2015
The best ETFs of Q1 2015 can provide clues and insights about market trends in the coming quarters.
By Kent Thune | Mar 26, 2015
If you are looking for ways to profit from a weak euro, you'll want to consider these ETFs.
By Rick Pendergraft | Mar 26, 2015
I expected a fair number of stocks and ETFs on the bearish scan. What jumped out was that three of the 37 names on the list were prominent bond ETFs.
By Rick Pendergraft | Mar 19, 2015
What jumped out at me after the Fed announcement wasn’t so much the overall market as what happened to bank stocks after the meeting.
By Rick Pendergraft | Mar 12, 2015
With U.S. stocks struggling over the last few weeks, I have been looking for opportunities in the foreign markets.
By Rick Pendergraft | Feb 27, 2015
Gold, gold mining and silver are turning up on my bullish list, and Market Vectors Gold Miners ETF is showing a standout pattern.
By Kent Thune | Feb 27, 2015
The economy is setting the stage for large-cap growth stock funds to take the lead. Here's how to take advantage of market trends now.
By Kent Thune | Feb 20, 2015
As spot gold has retraced to around $1200, it's time to get ready for the next move higher. Here are two great gold funds that fit the bill.
By Lawrence Meyers | Feb 19, 2015
Safety is the goal with these high-yield ETFs, which all pay more than 6%.