exchange traded funds wikipedia

Exchange traded funds wikipedia

An index fund exchange traded funds wikipedia index tracker is a mutual fund or exchange-traded fund ETF designed to follow certain preset rules so that it can replicate the performance "track" of a specified basket of underlying investments. Index funds may also have rules that screen for social and sustainable criteria. An index fund's rules of construction clearly identify the type of companies suitable for the fund.

Simplify retirement planning and take finding a mix of stocks and bonds off my to-do list. Seek dividend and interest payments from stocks and bonds or through covered call options strategies. Use a short-term investment strategy to pursue income while maintaining liquidity. Exploring funds by goal helps investors learn about iShares ETFs that may help them meet their financial goals. It filters more than US iShares ETFs to a smaller selection through the lens of broad investment goals by using criteria such as asset class, geography, and investment objectives.

Exchange traded funds wikipedia

The exchange-traded funds available on exchanges vary from country to country. Many of the ETFs listed below are available exclusively on that nation's primary stock exchange and cannot be purchased on a foreign stock exchange. Contents move to sidebar hide. Article Talk. Read Edit View history. Tools Tools. Download as PDF Printable version. List of American exchange-traded funds List of Australian exchange-traded funds List of Canadian exchange-traded funds List of European exchange-traded funds List of Hong Kong exchange-traded funds List of Indian exchange-traded funds List of Indonesian exchange-traded funds List of Japanese exchange-traded funds List of New Zealand exchange-traded funds List of Singaporean exchange-traded funds List of South African exchange-traded funds List of South Korean exchange-traded funds List of Taiwan exchange-traded funds List of Turkish exchange-traded funds See also [ edit ] Exchange-traded fund Exchange-traded product List of hedge funds List of private-equity firms List of investment banks Boutique investment bank Fund of funds Boutique investment bank Open-end fund Sovereign wealth fund This article includes a list of lists. Categories : Lists of lists Exchange-traded funds. Hidden categories: Articles with short description Short description is different from Wikidata Long lists of lists. Toggle limited content width.

One problem occurs when a large amount of money tracks the same index. Download as PDF Printable version. Investors can easily increase or decrease their portfolio exposure to a specific style, sector, or exchange traded funds wikipedia at a lower cost with ETFs.

An inverse exchange-traded fund is an exchange-traded fund ETF , traded on a public stock market , which is designed to perform as the inverse of whatever index or benchmark it is designed to track. These funds work by using short selling , trading derivatives such as futures contracts , and other leveraged investment techniques. By providing over short investing horizons and excluding the impact of fees and other costs, performance opposite to their benchmark, inverse ETFs give a result similar to short selling the stocks in the index. Because their value rises in a declining market environment, they are popular investments in bear markets. Short sales have the potential to expose an investor to unlimited losses , whether or not the sale involves a stock or ETF.

This is a table of notable American exchange-traded funds , or ETFs. As of , the number of exchange-traded funds worldwide was over 7,, [1] representing about 7. Sector ETFs may track sector-based indexes or simply correspond to a basket of companies thought to be representative of a specific market sector. This is often via commodity futures. These fall into four general categories, agricultural, which includes livestock and "softs"; energy resources; industrial materials; and precious metals. The most popular precious metals ETFs hold physical stocks of the metal rather than futures. Typically ETFs track an index. These funds are structured in a sophisticated way, and due to their extreme volatility they may not be appropriate vehicles for the casual investor. Securities and Exchange Commission issued a warning to investors that leveraged exchange-traded funds could lead to big losses even if the market index or benchmark they track shows a gain. Short ETFs enable investors to profit from declines in an underlying index without directly selling short any securities.

Exchange traded funds wikipedia

An exchange-traded fund ETF is a type of investment fund that is also an exchange-traded product , i. The list of assets that each ETF owns, as well as their weightings, is posted on the website of the issuer daily, or quarterly in the case of active non-transparent ETFs. Many ETFs provide some level of diversification compared to owning an individual stock. An ETF divides ownership of itself into shares that are held by shareholders. Depending on the country, the legal structure of an ETF can be a corporation , trust , open-end management investment company , or unit investment trust. They also receive annual reports. An ETF generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value , although deviations can occur. The largest ETFs, which passively track stock market indices, have annual expense ratios as low as 0. These fees are paid to the ETF issuer out of dividends received from the underlying holdings or from selling assets.

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The most active ETFs are very liquid, with high regular trading volume and tight bid-ask spreads the gap between buyer and seller's prices , and the price thus fluctuates throughout the day. WisdomTree Investments. Hidden categories: Articles with short description Short description matches Wikidata Articles lacking in-text citations from March All articles lacking in-text citations Webarchive template wayback links. Category : Exchange-traded funds. Because index funds are passive investments, the turnovers are lower than actively managed funds. April 16, The mutual fund itself sold securities for a gain for the year, therefore must declare a capital gains distribution. Investment News. Investors have a high rate of satisfaction with ETFs, especially for traditional asset classes. Additional index funds within these geographic markets may include indexes of companies that include rules based on company characteristics or factors, such as companies that are small, mid-sized, large, small value, large value, small growth, large growth, the level of gross profitability or investment capital, real estate, or indexes based on commodities and fixed-income. Investors are especially demanding further developments of ETF products in the areas of ethical, socially responsible investing , and smart beta equity [ clarification needed ] and factor indices [ clarification needed ].

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Some actively managed equity ETFs address this problem by trading only weekly or monthly. The conclusion is that most investors would be better off buying a cheap index fund. Retrieved August 27, The Globe and Mail. April Read Edit View history. All Rights Reserved. An inverse exchange-traded fund is an exchange-traded fund ETF , traded on a public stock market , which is designed to perform as the inverse of whatever index or benchmark it is designed to track. In financial mathematics terms, they are not Delta One products: they have Gamma. Hidden categories: Articles with short description Short description is different from Wikidata Long lists of lists. Although maintaining the future position has a slightly higher cost structure than traditional passive sampling, synthetic indexing can result in more favourable tax treatment, particularly for international investors who are subject to U. Roundhill ETFs.

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