Posts Tagged ‘exchange traded funds’

Boost your portfolio with ETFs

Posted October 15, 2008 by Bernz

First off, ETF stands for exchange-traded funds. It’s a fund that tracks a market index, only it trades like a stock on the exchange. That said; let’s take a closer look at the attractive benefits you get from investing in ETFs.

One of the top reasons that make purchasing ETFs so appealing is there flexibility. For instance, if you’re an investor who’s concerned about getting quick access to your cash, then you can sell ETF shares whenever the need arises. Let’s say you need cash before lunch. Well, if you have ETF shares you don’t have to wait until the market closes at 4p.m. to sell them like you do with stock. You could just call your broker at 9 in the morning and place an order and then your trade will be conducted at whatever the current price is.

Another major advantage to investing in ETFs is their simplicity. ETFs work well for those investors who find the whole process of analyzing and picking the “right” stock confusing, boring, or to big a hassle.

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