Exchange Traded Funds (ETFs) are a very exciting (and profitable) investment vehicle that I’ve studied over the past number of weeks. Why put all my eggs (investment risk) into one basket with an individual stock when I can spread my eggs into many baskets using one ETF? What does this mean? Simply put, an ETF is a basket of stocks in a given sector or index. For example, XLF is an ETF that holds financial stocks; and its’ major holdings are American Express, Bank of America, JP Morgan Chase and Wells Fargo, just to name a few. When I buy a share of XLF, I’m actually buying into a basket of stocks from these different financial institutions. If one of these institutions does poorly, it will have little effect on the price of the overall ETF. Whereas, if I had bought an individual stock and it performed poorly, I could lose my shirt!
Would you like to take a look at an ETF and see what holdings it has? I’d suggest going to http://finance.yahoo.com/ . You can then look up an ETF, say XLF: http://finance.yahoo.com/q?s=xlf Here you can look up the profile, performance and holdings of each ETF. In the above mentioned ETF, I stated some of the holdings for XLF. I found this information here: http://finance.yahoo.com/q/hl?s=XLF+Holdings. This list includes the top ten holdings in each ETF.
There are many ETFs for different sectors and indices. How is one to know what to select for their portfolio? This is one of the areas that we will focus on in the ETF course that we are preparing at http://InvestorsHELP.net! Sectors include Financial, Energy, Utilities, Technology, Material, Consumer Staples, Consumer discreet select, Industrial and Healthcare. Indexes that we’ll look at are Dow Jones, Nasdaq, Russell 2000, S&P 500, to name a few.
If you want to continue to follow my journey on learning how to profit in the financial markets, please check back to this blog soon! I’ll keep you updated on my progress.
Happy Returns,
Cindy
Would you like to take a look at an ETF and see what holdings it has? I’d suggest going to http://finance.yahoo.com/ . You can then look up an ETF, say XLF: http://finance.yahoo.com/q?s=xlf Here you can look up the profile, performance and holdings of each ETF. In the above mentioned ETF, I stated some of the holdings for XLF. I found this information here: http://finance.yahoo.com/q/hl?s=XLF+Holdings. This list includes the top ten holdings in each ETF.
There are many ETFs for different sectors and indices. How is one to know what to select for their portfolio? This is one of the areas that we will focus on in the ETF course that we are preparing at http://InvestorsHELP.net! Sectors include Financial, Energy, Utilities, Technology, Material, Consumer Staples, Consumer discreet select, Industrial and Healthcare. Indexes that we’ll look at are Dow Jones, Nasdaq, Russell 2000, S&P 500, to name a few.
If you want to continue to follow my journey on learning how to profit in the financial markets, please check back to this blog soon! I’ll keep you updated on my progress.
Happy Returns,
Cindy
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