Loading...

Messages

Proposals

Stuck in your homework and missing deadline?

Get Urgent Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework Writing

100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

How are they like mutual funds? How are they different?

Category: Marketing Paper Type: Online Exam | Quiz | Test Reference: MLA Words: 520

            It is a fact that ETFs are similar as well as bit different from mutual funds. One of the primary similarities between the two is that both funds are baskets or assets, which are related with individual bonds or stocks, and managed professionally. Both funds are considered less risky than any other funds and both come with range of options in terms of investment. However, ETFs are considered different from mutual funds because they are traded on exchange as per common stock. ETFs come with real time pricing changing all the time, but mutual funds does not offer this facility (Vanguard )

What is Exchange-traded fund (ETFs)?

           ETF means exchange traded fund, which is a securities basket, bond or commodity that a person can buy or sell with the help of a brokerage firm. This buying and selling process happens through the stock exchange. All classes of assets are covered under ETFs ranging from alternative assets to traditional investment as well as currencies & commodities. For individual investors, ETFs are one of the most valuable and crucial products which they can easily buy and sell (Carrel, Dion and Dion)

 How are they like stocks? How are they different?

            It is important to mention here that ETFs and stocks don’t have just one similarity that they are ETFs are just considered like the stocks, other than that they are different in so many ways. The major difference between the two is that stock deals with a single company, whereas a diversified opportunity and exposure is provided by ETFs to a market, sector or industry. The internal mechanics of ETFs do also differ from a common stock (Abner and Gastineau)

What are some popular Exchange-traded fund (ETFs)?

            The investors have many choices in terms of buying ETFs as they come with so much variety. Few popular ETFs for the investors are Financial Select Sector SPDR Fund (XLF), Vanguard FTSE Developed Markets ETF (VEA), Vanguard Total Stock Market ETF (VTI), SPDR Gold Shares ETF (GLD), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF (SPY) etc (ETF TRENDS)

What current news can you find about Exchange-traded fund (ETFs)?

            According to a news article in WSJ, it is revealed that investors are looking to buy smart ETFs more so that they can avoid all kind of volatility. It has been observed that two ETFS have shown more interest from investors and have become popular because they are less volatile in nature (Loder)

References of Exchange-traded fund (ETFs)

Abner, David J. and Gary L. Gastineau. How ETFs are different from stocks. 2012. 31 March 2019. <https://www.fidelity.com/learning-center/investment-products/etf/how-etfs-different-than-stocks>.

Carrel, Lawrence, Don Dion and Carolyn Dion. What are ETFs? 2011. 2019 March 2019. <https://www.fidelity.com/learning-center/investment-products/etf/what-are-etfsLawrence Carrel>.

ETF TRENDS. POPULAR ETFS. 219. 31 March 2019. <https://www.etftrends.com/popular-etfs/>.

Loder, Asjylyn. Investors Looking to Escape Volatility Turn to ‘Smart’ ETFs. 2019. 31 March 2019. <https://www.wsj.com/articles/investors-looking-to-escape-volatility-turn-to-smart-etfs-11550667600>.

Vanguard . ETFs vs. mutual funds: A comparison. 2019. 31 March 2019. <https://investor.vanguard.com/etf/etf-vs-mutual-fund>.

 

Our Top Online Essay Writers.

Discuss your homework for free! Start chat

Top Class Engineers

ONLINE

Top Class Engineers

1218 Orders Completed

Quality Assignments

ONLINE

Quality Assignments

0 Orders Completed

Coursework Assignment Help

ONLINE

Coursework Assignment Help

63 Orders Completed