ETFS EXPLAINED
Exchange traded funds (ETFs) offer diversified and transparent access to the world’s investment markets and can be easily traded on a stock exchange.
Learn more below
Learn more about ETFs on our education platform.
Exchange traded funds (ETFs) offer diversified and transparent access to the world’s investment markets and can be easily traded on a stock exchange.
Learn more below
What is an ETF?
An ETF, or Exchange traded fund, is a group of diverse assets that trades on a stock exchange as a unit.
Imagine a set of building blocks. Each block is a piece in and of itself, but if you group them together, they create a structure, or an ETF.
An ETF is made up of several diversified “building blocks” such as stocks, bonds or commodities. An individual block can represent a company (Apple) or country (Mexico), but together they form an industry (technology) or a continent (Latin America).
ETFs are characterized for being:
Diversified: they contain a variety of assets such as stocks, bonds and commodities
Transparent: you can see the underlying investments contained within each ETF
Accessible: ETFs provide access to markets and industries worldwide
Flexible: ETFs operate similarly to stocks; they can be traded as long as the exchange where they are traded is open, and their price adjusts throughout the day
Cost Efficient: Management fees on most ETFs are usually much lower than mutual funds, which increases the possibility of better returns
What is an ETF?
An ETF, or Exchange traded fund, is a group of diverse assets that trades on a stock exchange as a unit.
Imagine a set of building blocks. Each block is a piece in and of itself, but if you group them together, they create a structure, or an ETF.
An ETF is made up of several diversified “building blocks” such as stocks, bonds or commodities. An individual block can represent a company (Apple) or country (Mexico), but together they form an industry (technology) or a continent (Latin America).
ETFs are characterized for being:
Diversified: they contain a variety of assets such as stocks, bonds and commodities
Transparent: you can see the underlying investments contained within each ETF
Accessible: ETFs provide access to markets and industries worldwide
Flexible: ETFs operate similarly to stocks; they can be traded as long as the exchange where they are traded is open, and their price adjusts throughout the day
Cost Efficient: Management fees on most ETFs are usually much lower than mutual funds, which increases the possibility of better returns
Learn more about ETFs on our education platform.
This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are as of January 26, 2021 and are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.
In Latin America: No securities regulator has confirmed the accuracy of any information contained herein. The provision of investment management and investment advisory services is a regulated activity in Mexico thus is subject to strict rules. For more information on the Investment Advisory Services offered by BlackRock Mexico please refer to the Investment Services Guide available at www.blackrock.com/mx
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