What are ETF's?

[John Naronha]

[Parker]

Hi John,

 

 

ETF means Exchange Traded Fund, and they work by tracking the performance of a specific market or whole equity indices such as S$P Europe 350.
As the name indicates, these are funds traded on the stock exchange the same way other stocks are traded. Being a fund means ETFs consist of either stocks, commodities, currencies, bonds, properties, or a combination of them all. Therefore, ETFs give you access to diversified asset classes all at the same time.
ETFs earn you returns depending on the asset classes that make it up. Depending on the type of fund, you can earn capital gains or interest income money, which your ETF provider will send you.
Before investing in ETFs, carefully read and understand its full prospectus to understand its holdings, risks, investing strategies, and its prior performance.