DIFFERENT EXCHANGE TRADED FUNDS FOR YOUR PORTFOLIO

Exchange traded funds are not created equal. Therefore, if you are planning to invest in such funds, you must be familiar with its different kinds. Equity Funds Most exchange traded funds follow indexes or sectors. Some index ETFs imitate an index in its entirety, and others just utilize representative samples. These deviate a bit by using futures, options, and swap contracts. It also includes the purchase of stocks that are sometimes not included in the index. If this sampling gets too aggressive, it can result to tracking errors. Any ETF…

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