The first ETF (Exchange Traded Fund) was the stock broker's answer to competing with mutual funds. The first one was from State Street (SSgA) in 1993 and now there are over 750 ETF's representing less than a trillion dollars in invested assets. Mutual funds hold over $7 trillion to give you a comparison in a $20+ trillion U.S. marketplace and $50+ trillion world-wide market.
It is a big world.
They are either (1) actively managed or (2) passive, like an indexed mutual fund.
They can be low cost, tax efficient, transparent (ETF's must report their performance and holdings each day on their respective websites) and liquid (you can buy and sell them at anytime during the trading day unlike mutual funds that are priced at the end of each day).
Making large purchases of well-diversified ETF's and holding for long-time periods? May make sense but some indexed mutual funds may be comparable.
Making "sector" plays? "Country-specific" plays? "Alternative" plays? Be careful of the trading costs and the many risks. Many are not meant to be held more than a "betting" day or shorter time-frame and are speculative.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.