How Safe Are ETF's?
I received an email this morning regarding ETFs. Everyone has heard of ETFs and many are suspicious of them. The question many ask is what happens in a market crash? How will ETFs perform and will they survive?
Firstly, what is an ETF?
At its core, it is an instrument that replicates the performance of an underlying asset. That could be an index or a group of stocks or even a commodity or currency. It is a simple cost-effective way of getting exposure to that asset without the hassle of picking stocks or making too many complicated decisions. You like Asia, buy an ETF that gives you exposure to a bunch of Asian stocks. It is simple.
An ETF is a form of Exchange Traded...Continue Reading