Why does everybody forget to mention that trading an ETF is done by technically buying shares of the ETF stock and therefore your investment grows in the same why as if you bought an individual stock of a listed company. ETF literally stands for EXCHANGE TRADED FUND, I don’t like it when people overlook this simple concept
You need to set up a brokerage account, that brokerage account will store any money you receive from an ETF. You can reinvest it with a D.R.I.P or let it sit in your brokerage account
You buy an individual share of an ETF the same way you would buy an individual stock. With everyone buying the ETF, this creates a pool of money. This pool is used to invest in individual stocks, bonds, etc. SPY, one of the most popular ETFs tracks the S&P500 index. Therefore, the SPY ETF pool of money will be spent on buying shares of stocks within the S&P500. When you buy an ETF share, you are giving your money to the ETF company to invest on your behalf, with the intention to invest in whatever assets the ETF is set to focus on. Investing in the SPY ETF, you are expected to get a return identical to the s&p 500 index. ETF companies charge a fee (expense ratio) they do not invest your money for free.
@@eknight101yea they just explained random pieces of info and didn’t really put it all together. Also regarding the expense ratio fees, index fund ETFs have some of the lowest fees of any ETF because they are “passively managed.” Which just means they don’t have to do any research, they just copy the “index” they are tracking, which keeps their operations cost low. “Actively managed” funds will have higher fees because the company is doing active research on investments and the fund is offering a specific service/finding unique investment solutions.
Contrary to this DOW also just hit a record high. I'm optimistic about the prospect of the market. Also keeping an eye on digital currencies. I'm seeking ways I could divest some of my portfolio, maybe around 150k, to include digital currencies. Can you make a video on that?
A long-term approach can definitely help with navigating market volatility. set clear goals, focus on quality Investments, stay patient and avoid emotional reactions.
Such uncertainties are the reasons I don’t base my judgement on a ''heresay''. My dollar portfolio is made up of 30% S&P500, 25% Index funds(ETFs),15% Gold and over 30% in digital assets, thanks to my CFA for this accurate asset allocation. This strategy is what works for my spouse and I. We've made over 80% capital growth minus dividends.
An index fund is just a fund that tracks an index. It can come in the form of a mutual fund or as an ETF. A lot of these influencers keep using mutual funds and index funds interchangeably but they shouldn’t.
Bro take this down. Does not show you how it works. Only covers one point. Etf is not only a COLLECTION of things. That is an idea fund bro. Example of etf that only tracks ONE thing NOT A COLLECTION OF THINGS: silver etf, gold etf, btc etf
Why does everybody forget to mention that trading an ETF is done by technically buying shares of the ETF stock and therefore your investment grows in the same why as if you bought an individual stock of a listed company. ETF literally stands for EXCHANGE TRADED FUND, I don’t like it when people overlook this simple concept
But how the money is received, where it goes, how the Profit or loss is effected to the money invested & how it is returned.
You need to set up a brokerage account, that brokerage account will store any money you receive from an ETF. You can reinvest it with a D.R.I.P or let it sit in your brokerage account
You buy an individual share of an ETF the same way you would buy an individual stock. With everyone buying the ETF, this creates a pool of money. This pool is used to invest in individual stocks, bonds, etc. SPY, one of the most popular ETFs tracks the S&P500 index. Therefore, the SPY ETF pool of money will be spent on buying shares of stocks within the S&P500. When you buy an ETF share, you are giving your money to the ETF company to invest on your behalf, with the intention to invest in whatever assets the ETF is set to focus on. Investing in the SPY ETF, you are expected to get a return identical to the s&p 500 index. ETF companies charge a fee (expense ratio) they do not invest your money for free.
@@bryce3150 Thank you! your explanation is far greater than the actual video.
@@eknight101yea they just explained random pieces of info and didn’t really put it all together.
Also regarding the expense ratio fees, index fund ETFs have some of the lowest fees of any ETF because they are “passively managed.” Which just means they don’t have to do any research, they just copy the “index” they are tracking, which keeps their operations cost low. “Actively managed” funds will have higher fees because the company is doing active research on investments and the fund is offering a specific service/finding unique investment solutions.
Contrary to this DOW also just hit a record high. I'm optimistic about the prospect of the market. Also keeping an eye on digital currencies. I'm seeking ways I could divest some of my portfolio, maybe around 150k, to include digital currencies. Can you make a video on that?
A long-term approach can definitely help with navigating market volatility. set clear goals, focus on quality Investments, stay patient and avoid emotional reactions.
Such uncertainties are the reasons I don’t base my judgement on a ''heresay''. My dollar portfolio is made up of 30% S&P500, 25% Index funds(ETFs),15% Gold and over 30% in digital assets, thanks to my CFA for this accurate asset allocation. This strategy is what works for my spouse and I. We've made over 80% capital growth minus dividends.
I find your situation fascinating. Would you be willing to suggest a trusted advisr you've worked with?
Her name is ZAREEN GRACE CHURCH I can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I’ve just looked up her full name on my browser and found her webpage, very much appreciate this
Great video! What's the tablet you are using there?
Most probably its an I pad mini with an apple pencil
Then how are they different from Index funds ?
An index fund is just a fund that tracks an index. It can come in the form of a mutual fund or as an ETF. A lot of these influencers keep using mutual funds and index funds interchangeably but they shouldn’t.
Bro take this down. Does not show you how it works. Only covers one point. Etf is not only a COLLECTION of things. That is an idea fund bro. Example of etf that only tracks ONE thing NOT A COLLECTION OF THINGS: silver etf, gold etf, btc etf
Huh what?