Available since 1993 in the USA, Exchange-traded Fundsâ€™ existence is celebrated on September 3rd.
Online PR News – 14-August-2014 – Beursplein – Amsterdam, The Netherlands, August 13, 2014 -- Offering lower trading costs to traders worldwide, Exchange-traded Funds (ETFs) are cheaper to invest in than common stocks. Automatic systems follow an index to create a pool of securities and other assets and therefore make it easier for brokers to operate and maintain.
Nathan Most and Steven Bloom designed and developed Standard & Poor's Depositary Receipts (NYSE Arca: SPY), which were introduced in January 1993. Known as SPDRs or "Spiders", the fund became the largest ETF in the world. Common ETF types are: Index ETFs, Stock ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Actively Managed ETFs, Exchange-traded Grantor Trusts and Inverse ETFs.
Exchange-traded Funds are not a common type of investment around the world. Although ETFs have grown in popularity, they still claim a small slice of the investorsâ€™ money pie, compared to the amount invested in stocks, indices or commodities.
ETF Index investing is a form of passive asset in which the assets are invested in accordance with the composition of a stock or other financial index. It does not attempt to exceed the chosen index which serves as a benchmark a higher return.
ETFâ€™s allow for individuals to gain exposure to certain sectors and industries, while being very similar to stocks. Part of the popularity of ETFâ€™s is that they are often a cheaper alternative to a traditional mutual fund, though ETFâ€™s are only really recommended to those who are experienced investors.
International Exchange-traded Fund Day is an initiative from www.investment-guru.com. For more information regarding ETF trading and more, please visit our website: http://www.investment-guru.com/etf-introduction
Jan de Wit
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