An exchange-traded fund (ETF) is a type of index fund that is traded on the exchange like a stock. This could be considered as safe investment because we can assume that index is not going to be negative in the long run.
Most of such funds track indices. S&P 500 Index, Dow Jones Industrial Average
and NASDAQ 100 are few popular among them.
ETFs don't need to manage the funds as it directly relates to Indices or some other average.
Investment returns may still depend on the duration and time of your investment. ETF investments are more suited for large investments due to its trading costs associated with investing in ETF. So, it's good for those who consider this as a stable investment.
Technorati Tags: Finance, Investing, Investment, Index Funds, Mutual Funds, Stocks, Exchange Traded Funds
1 comment:
Your work is adimrable and hopping for some more informative posts on money exchange.
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