An ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits similar to those of stocks, mutual funds, or bonds. Like individual stocks, ETF shares are traded throughout the day at prices that change based on supply and demand.
What are the 5 types of ETFs?
- Equity ETFs. Equity ETFs track an index of equities.
- Bond/Fixed Income ETFs. It's important to diversify your portfolio2.
- Commodity ETFs3
- Currency ETFs.
- Specialty ETFs.
- Factor ETFs.
- Sustainable ETFs.
What's ETF stand for?
exchange-traded fund
What are examples of ETFs?
- The SPDR S&P 500 (SPY) is the oldest surviving and most widely known ETF that tracks the S&P 500 Index.
- The iShares Russell 2000 (IWM) tracks the Russell 2000 small-cap index.
- The Invesco QQQ (QQQ) indexes the Nasdaq 100, which typically contains technology stocks.
Consumer staples equities ETFs invest in companies that sell essential (inelastic) goods and services. These companies are involved in a number of sectors, including food, beverages, tobacco, and household and personal products.
What are the best types of ETFs?
- iShares Core S&P 500 ETF (IVV)
- Invesco QQQ ETF (QQQ)
- Vanguard Russell 2000 ETF (VTWO)
- Schwab US Dividend Equity ETF (SCHD)
- iShares ESG Aware MSCI USA ETF (ESGU)
- Vanguard Total International Stock ETF (VXUS)
- Vanguard Long-Term Corporate Bond ETF (VCLT)
- What Is an ETF?
- The Vanguard Total Stock Market ETF (VTI)
- The SPDR S&P 500 ETF (SPY)
- The iShares Core MSCI EAFE ETF (IEFA)
What is the best performing ETF of 2021?
Energy is king Topping the chart as the best performing ETF of 2021 is the iShares Oil & Gas Exploration & Production UCITS ETF (SPOG) which returned 73.4% over the past 12 months.4 Jan 2022