Exchange Traded Fund - (ETF)

Exchange Traded Funds (ETF) consist of a group of underlying securities or stocks. They trade throughout the day. They emulate well known indexes and are offered by several banks & financial institutions. The Vanguard ETFs are the most sought after by retail customers as they have lowest expense ratios & management fees and are geared towards the investor unlike ETFs offered by banks that make fees on commissions. Some ETFs provide dividends e.g. REIT (Real Estate Income Trust)


ETF units are listed on a stock exchange and purchased through a broker. Typically mutual funds are purchased and sold through a mutual fund dealer. The ETFs are not actively managed by a mutual fund manager, as they track a benchmark. The ETF is built using the same stocks that make that benchmark or index. The management expense ratio of ETFs is very low, as they are not paying a manager a salary & bonus to manage the fund. ETF's are provided by all banks & asset management companies.




ETF spotlight

OILD Proshares UltraPro 3x Short Crude
UPRO - Proshares Ultrapro S&P500
SH - Proshares Short S&P500
OILU - Proshares UltraPro 3x Crude Oil
UVXY - Proshares Ultra VIX Short-term
GLL - Proshares Ultra Gold 
UCO - Proshares Ultra Bloomberg Crude Oil
UGAZ - VelocityShares 3x Long Natural Gas
DGAZ - VelocityShares 3x Inverse Natural Gas