An ETF is a selection of stocks or securities grouped together and its price tracks that of an underlying index. ETFs can contain securities such as stock, commodities or bonds.
An ETF is called an exchange-traded fund because it’s traded on an exchange just like shares. Investors can buy and sell an ETF with its market price fluctuating over time. There is a potential for gains as well as losses when involved in ETF trading.
There are various types of ETFs available to traders and investors that can be used to earn income, speculation price movements, or hedge risk on existing portfolios.
Examples of ETFs include:
Disclaimer – Futures, CFD, Margined Foreign Exchange trading, Warrants, Options and Spread Betting all carry a high level of risk to your capital. Only speculate with money you can afford to lose. Futures, CFD, Margined Foreign Exchange trading and Spread Betting may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.
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