ETFs are collections of potentially dozens, hundreds, even thousands of investments
Because they’re traded on major exchanges, they’re typically as easy as stocks to buy and sell
You can buy ETFs that track specific industries or strategies
At $0 per trade, they’re usually less expensive than other baskets of investments such as mutual funds
For a limited time, receive a generous cash bonus when you open a new AMQ account with a qualifying
deposit by June 30, 2022.
Trading ETFs enables investors to obtain instant diversification, by gaining exposure to a range of instruments across a sector, or within the S&P 500 or Russell 3000 index for example, with a single transaction.
ETFs can be classified into three major fund types, typically based on specific investment characteristics. These are passive, smart beta and actively managed (including semi-transparent ETFs). The difference between each type of fund is the investment strategy underpinning it. For instance, index investing uses a strategy that requires little involvement, as these funds are set up to mimic the performance of a broad market index, such as the FTSE 100 or S&P 500. These are passively-managed funds. An actively-managed fund, on the other hand, will have its holdings readjusted and reallocated on a frequent basis by portfolio managers in an attempt to outperform the benchmark index.