trading screen ETF Trading--What are Exchange Traded Funds

Exchange traded funds have become increasingly popular among investors and traders because they can be used to diversify a portfolio and can be traded like a stock. What are exchange traded funds? Watch this video by E*TRADE and learn more about ETF trading, and some considerations for incorporating index ETFs into your portfolio. Like and share.




For a current prospectus, visit www.etrade.com/etf.

Exchange-traded funds [ETFs] are subject to risks similar to those of other diversified portfolios. Although ETFs are designed to provide investment results that generally correspond to the performance of their respective underlying indices, they may not be able to exactly replicate the performance of the indices because of expenses and other factors. Also, there are brokerage commissions associated with trading ETFs that may negate their low management fees. ETFs are required to distribute their portfolio gains to shareholders at year end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. ETF trading will also generate tax consequences.

Diversification does not ensure profit or protect against loss in declining markets.

trading screen ETF Trading--What are Exchange Traded Funds
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