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ISE Invest - etf index
 
ISE Invest - ETF's and Index's
 

ETF’s – Exchange Traded Funds

What Does Exchange-Traded Fund - ETF Mean?
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order.

One of the most widely known ETFs is called the Spider (SPDR), which tracks the S&P 500 index and trades under the symbol SPY. Today there are thousands of ETF’s covering every market, industry and sector as well as commodities, economies and new markets.
Designed mainly to spread risk ETF’s can be a great way to take advantage of any investment area while minimising overall risk exposure.

ISE Invest provide seminar education and coaching on ETF investing and utilisation in an investment portfolio. Contact us on support@iseinvest.com for full details.

Index’s

All investors, and almost all non investors, are aware of the main US, European, and Asian stock indexes, because these are the indexes that are reported in the news. However, many investors, and certainly most non investors, do not know how the stock indexes are traded, and often assume that they are traded like individual stocks. The stock indexes cannot actually be traded directly, and are available for information only (i.e. as a way to track the performance of the markets or a specific sector). Market data is available for the stock indexes, and they can be charted like any other market, but there is no way to make either a long or short trade on the actual stock indexes.

Futures and Options Markets -
Whenever we hear a trader mention that they are long on the Nasdaq, or short on the FTSE 100, they are not actually long or short on the Nasdaq or FTSE 100 indexes. They are actually long or short on a futures or options market such as the NQ futures market or the Z options market. Futures and options that are based upon a stock index are known as derivatives markets, because they are derived from the underlying stock index. There are futures and options markets available for all of the popular stock indexes. Stock index futures and options markets are some of the most popular markets for short term and long term investors alike.

ISE Invest provide seminar education and coaching on ETF investing and utilisation in an investment portfolio. Contact us on support@iseinvest.com for full details.

 

 

 
 
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