How To Assess An ETF?

The expense ratio of a fund—the rate charged by the fund to accomplish its job—is the major input in the case of ETFs. Because most ETFs are designed to mimic an index, we can evaluate an ETF’s efficiency by comparing the fee rate it charges to how well it “tracks”—or replicates—its benchmark’s performance. ETFs that […]

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How SPY ETF Works?

The SPDR ETF is a passively managed exchange-traded fund that tracks the S&P 500 index, which includes around 500 of the largest publicly listed stocks in the United States as defined by market capitalization. SPY investors will benefit from a highly diversified basket of large-cap U.S. stocks that spans all 11 market sectors. How is

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How Safe Are ETFs?

Because the bulk of ETFs are index funds, they are relatively safe. An indexed ETF is a fund that invests in the same securities as a specific index, such as the S&P 500, with the hopes of matching the index’s annual returns. While all investments involve risk, and indexed funds are subject to the whole

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