What are ETFs?
Exchange Traded Funds are an emerging class of low cost index funds that trade like stocks. They can be bought and sold throughout the market day and they offer portfolio exposure to the world's leading indexes.
Learn what is different between ETFs and Individual stocks, Closed-End Funds, and Mutual Funds.
Gain an advanced understanding of ETFs and how to apply them to your portfolio.
Why ETFs?
For investors and leading financial advisors, exchange traded funds have become a popular choice for numerous reasons. Here is a brief review of some key advantages:
Lower Expense Ratios: The expense ratios of ETFs are consistently lower than actively managed mutual funds. Lower costs without sacrificing quality is a key attraction.
Tax Efficiency: ETFs are renowned for their low portfolio turnover. For shareholders, this can translate into lower tax liabilities.
Trading Flexibility: ETFs trade throughout the market day and can be bought and sold at the click of a button.
Tactical Investment Strategies: ETFs open a universe of sophisticated investment strategies such as covered call writing, cash management, hedging, tax-loss re-positioning, and core/satellite.
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Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, charges, and expenses of an ETF carefully before investing. For a prospectus containing this, and other important information, contact the fund company. The prospectus should be read carefully before investing.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, risks, charges, and expenses of an Exchange-Traded Fund (ETF) carefully before investing. A prospectus contains this and other information about the ETF can be obtained from the issuer. The prospectus should be read carefully before investing.
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