The Exchange Traded Funds

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An ETF is an Exchange Traded Fund. These funds sell and buy shares on an exchange. A company called an ETF Provider establishes and manages those funds, and you might find that one provider manages many funds.

Basically, these companies help you earn money on the exchange. This is a useful service and so there’s a commission included in the price of an ETF.

By buying a share of an ETF, investors basically buy shares of all the securities or assets the fund owns and trades. This is all done in a single purchase. The relatively low price of such securities lets you start investing with small amounts of money. However, if you have enough money to buy stocks yourself you can study different ETF’s best-performing stocks and create your own portfolio without paying commissions to ETF providers.

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• Trading strategies