With the economy going through questionable times, everyone is searching for the best place to save and invest. When the market gets volatile, investors want to research their options. I am opposed to jumping ship too soon, but I still encourage educated decisions.
Clients have been asking for more information on exchange-traded funds. Exchange-traded funds (or ETFs) are still relatively new investment products. They were first introduced in 1993, but have been gaining in popularity ever since.
What is an ETF?
The best way to describe an ETF is a mutual fund that trades on the stock market. An ETF owns many different stocks and attempts to mirror an index, such as the S&P 500. There are many different companies and indexes available, so owning ETFs will not impact your ability to properly diversify. There are also ETFs available for fixed income classes, or bonds. Continue reading ‘What Are Exchange-Traded Funds?’ »