Exchange-Traded Fund - ETF
What Does Exchange-Traded Fund - ETF Mean?
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you would pay on any regular order.
Gold ETF is an open-ended gold Exchange Traded Fund, which invests in physical gold and endeavors to track the domestic spot price of gold as closely as possible. Thus it provides an option to invest in gold without taking physical delivery of gold. Each unit of KGEFT is approximately equal to 1 gram of gold.
Key Features
Provides portfolio diversification
Simple to buy & sell, just like trading shares
No concerns about risk of theft and quality of gold
You can buy any quantity at wholesale gold prices
TOP OPEN ENDED -ETF FUNDS - PERIOD (LAST ) |
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