ETFs

Are ETFs Risky?

Market risk is the single most significant risk with ETFs. ETFs, like mutual funds and closed-end funds, are nothing more than a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 drops 50%, no amount of cheapness, tax efficiency, or transparency will help you. What are the […]

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Are ETFs Safe?

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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Are ETFs PFICs?

Mutual funds, and ETFs in general, are companies, which may not be clear at first appearance. This is true for both domestic and international versions. You are purchasing shares and becoming a part-owner of these organizations when you invest in them. The fund, or ETF, then invests the money it receives from investors in assets

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