Exchange-traded funds. In English, best as I can render it, they're mutual funds that are traded on the market like stocks (i.e. can be bought or sold at any point during the day). But things seem to be getting more complicated about how they're comprised (from tracking indexes directly to, well, not) which is part of why my head is hurting.
greeneyedkzin could explain it much better and will illustrations, I suspect.
At this point I'm just in the learning stage: no money has been harmed (or, alas, benefitted) from this knowledge.
I have invested in many an ETF and as a flexible way of exposing yourself to specific indexes or sectors they can't be beat. There are tax advantages as well. If I can be of assistance, get my email from Keith and I'll be happy to summarize all the research I did before I get involved.
Or, if you'd like, I can post a quick digression here.
"Owning the index" is a good way to seek to reduce risk, but it doesn't capture alpha, or excess profit. If you're risk-averse, this isn't bad, but you've got to choose well. Morningstar's a good service.
The thing is, there's an awful lot of free services on the Net, including most investment companies' websites. Also try www.investopedia.com for definitions. There's a definition of the day service there that's WONDERFUL.
For anything where you want the most dispassionate definition possible (for example, 529 plans for college), try www.sec.gov. You'll wade through legalese, but you can be certain that the description is accurate and dispassionate.
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timeasmymeasure
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Date: 2007-08-20 08:48 pm (UTC)no subject
Date: 2007-08-20 09:04 pm (UTC)At this point I'm just in the learning stage: no money has been harmed (or, alas, benefitted) from this knowledge.
no subject
Date: 2007-08-20 10:32 pm (UTC)Or, if you'd like, I can post a quick digression here.
no subject
Date: 2007-08-21 12:04 am (UTC)http://www.morningstar.com/Products/Store_ETFInvestor.html
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Date: 2007-08-21 12:46 am (UTC)(right now I'm kicking my IRSs into high gear)
no subject
Date: 2007-08-21 01:25 pm (UTC)The thing is, there's an awful lot of free services on the Net, including most investment companies' websites. Also try www.investopedia.com for definitions. There's a definition of the day service there that's WONDERFUL.
For anything where you want the most dispassionate definition possible (for example, 529 plans for college), try www.sec.gov. You'll wade through legalese, but you can be certain that the description is accurate and dispassionate.
Right now, they make EVERYONE's heads ache.