ETF stands for Exchange-Traded Fund, which ment fund that trades on a stock exchange, much like a stock. ETFs offer investors a way to diversify their portfolios by gaining exposure to a wide range of securities, including stocks, bonds, commodities, and currencies.
ETFs are designed to track the performance of a specific index or a group of assets. For example, an ETF may track the performance of the S&P 500 index, which represents the largest 500 publicly traded companies in the United States, or an ETF may track the price of gold.
One of the main benefits of ETFs is that they offer investors a cost-effective way to gain exposure to a diversified portfolio of securities. They also offer transparency, as investors can easily see the underlying holdings of the fund and the current market value of the fund's shares. Additionally, ETFs can be tax-efficient because they typically have lower turnover and capital gains distributions compared to actively managed mutual funds.
There are thousands of ETF's worldwide. So reach out to me to know which one is the best for you as per your risk profile and time horizon.
Here are some of the leading ETFs in the US by assets under management
SPDR S&P 500 ETF Trust (SPY) - This ETF tracks the performance of the S&P 500 index, which represents the 500 largest publicly traded companies in the United States. It has over $388 billion in AUM.
iShares Core S&P 500 ETF (IVV) - This ETF also tracks the S&P 500 index and has over $311 billion in AUM.
Vanguard Total Stock Market ETF (VTI) - This ETF tracks the performance of the CRSP US Total Market Index, which includes stocks of all sizes from the entire U.S. stock market. It has over $221 billion in AUM.
Invesco QQQ Trust (QQQ) - This ETF tracks the performance of the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It has over $163 billion in AUM.
iShares Russell 2000 ETF (IWM) - This ETF tracks the performance of the Russell 2000 index, which includes small-cap U.S. stocks. It has oveiShares U.S. Technology ETF (IYW) - This ETF tracks the performance of the Dow Jones U.S. Technology Index, which includes U.S. technology stocks. It has over $8 billion in AUM.
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For Fin Plan UAE
Sreekanth Pillai
Financial Architect
+971503963193
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