Thursday, January 1, 2015

Using ETF Funds


                       
Un-managed ETFs or exchange traded funds, that follow or track various indexes, are a low-cost way of diversifying investments.
                       
Apart from fulfilling your investment purpose, be sure to buy seasoned funds that have been around for awhile.
                       
ETFs can sometimes be costly to trade. A big buy or sell order can adjust  price. That is, to a premium where the price is higher than underlying assets, or a discount, if the price is lower than the net asset value or NAV of that ETF. New, smaller ETFs may have this problem, which generally disappear when the fund is around a few years and has grown in size. You can check to see what the stated, recorded amounts of premium or discounts are on average.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)

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