exchange traded funds
Exchanges Traded Funds (“ETFs”) represent a basket of securities that are traded on an exchange. They are similar to index mutual funds but trade like a stock.
Similar to index funds ETFs track the performance of a particular index, such as the S & P 500 known as the “spider”, or different sectors, geographic regions, countries and investment styles. Other ETFs track different sectors of the bond market as well as different commodities.
Advantages of ETFs include:
- Lower expenses than traditional funds
- More tax-efficient than mutual funds
- Can be bought / sold throughout trading day.
Because of the expenses of commissions, ETFs may not be appropriate for small investments, including monthly systematic programs, and some non-taxable accounts.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information. You can obtain a prospectus from your financial representative. Read carefully before investing.