PRLog - Dec. 17, 2014 - NEW YORK -- Everybody knows what ETF is. Exchange Traded Fund. Or ETFs stands for Exchange Traded Funds. What does ETF do? It gives an investor buying and selling flexibility - ETFs can be bought and sold at current market prices at any time during the trading day, unlike mutual funds and unit investment trusts, which can only be traded at the end of the trading day. So someone has to be very careful of these exchange traded funds because they are in a very dangerous place to be putting their money, more like options or futures than exchange traded funds in the opinion of the administrator of www.eliteinvestmentwealth.com.
Buying individual stocks or ETFs (exchange traded funds) at a discount brokerage is an entirely different experience. Investor should understand that some stocks of the same company can be traded in various stock exchanges. The administrator of Elite Investment Wealth likes exchange traded funds very much because they can reduce the risk at the time when someone is buying an exchange traded fund. When a trader is buying a whole basket of stocks instead of just a single security, it reduces risks. Someone should check the stocks as well.
The authorized participant can either keep the ETF shares that make up the creation unit or sell all or part of them on a stock exchange. Exchange Traded Funds are subject to risks similar to those of stocks. Some people make money trading ETFs, but many more lose early and often.
The only word of caution for anyone considering investing in exchange traded funds is this- “It is always wise to avoid exchange traded funds that use leverage to magnify their returns”. The second advantage of exchange traded funds is that there are now thousands of funds to choose from.
Many tracker funds and Exchange Traded Funds can be held in an ISA. Exchange traded funds hold a pool of assets, the total value of which is divided into proportional shares which are bought and sold by investors via a stock exchange.
ETFs are traded on the exchange during the day, so their price fluctuates with the market supply and demand, just like stocks and other intraday traded securities. An ETF, or Exchange Traded Fund, is nothing more than an investment portfolio consisting of many investments that trade like stocks.
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The administrator of www.eliteinvestmentwealth.com is not completely ruling out the strategy as a way to make money, but this goes with his point from the article, leveraged ETF's have a purpose and the administrator is sure that there are plenty of people who make money using them, as someone could with this strategy of ETF mastery, just personally believes there are easier ways of making money which carry dramatically less risk. From the latter, ETFs have inherited the ability to be traded between investors on a stock exchange (mutual funds can only be bought and sold once a day, through the manager of the fund). ETFs do the same but are listed on a stock exchange and can be bought and sold like shares.
The market price of an ETF unit should be close to the NAV per unit of the assets held by the ETF. Trading Costs - Since ETFs are traded like stocks, that means they generally have transaction costs like many would trading stock.
This exchange is in-kind, trading creation units of ETF shares for the securities. Some also charge extra to hold shares and exchange traded funds on top of the annual fee. If the ETF is trading at a discount to its underlying value, investors may buy ETF shares and/or sell the underlying securities.
Since ETFs trade like a stock, an investor can buy and sell shares on an exchange at a price determined by supply and demand. It is worthy to note that the exchange of ETF shares and the securities they represent between the Authorized Participants and the ETF sponsor is an in-kind exchange—there is no exchange of cash. The exchange of creation units for the securities that make up the ETF's index involves no cash and is considered an in-kind trade.
In theory an exchange traded fund cannot go to zero unlike individual stocks. ETFs are like closed-end index funds, traded over stock exchanges. But unlike index funds, ETF shares can be traded on the major exchanges like individual securities.
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Full review has been posted at www.investmentproductguide.com/etf-mastery with videos.
The administrator of Elite Investment Wealth has personal experience about various trading, Private Placements, project funding and was an individual financial adviser. He still does them but only by referral basis.
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Website www.investmentproductguide.com releases UNCUT review of ETF Mastery
December 17, 2014 at 17:10 PM EST
