What are Exchange Traded Funds (ETFs)?
Exchange Traded Funds (ETFs) are funds that track indexes like the NASDAQ-100 Index, S&P 500, Dow Jones Industrial Average. When you buy shares of an ETF, you are buying shares of a portfolio that tracks the yield and return of its original index. By owning an ETF, you get the diversification of an index fund plus the flexibility of a stock. Because ETFs trade like stocks, you can short sell them, buy them on margin and purchase as little as one share. Another advantage is that the expense ratios of most ETFs are lower than that of the average mutual fund.
Most Popular ETFs
Nasdaq-100 Index Tracking Stock (Nasdaq:QQQQ) This ETF represents the Nasdaq-100 Index, which consists of the 100 largest and most actively traded non-financial stocks on the Nasdaq, QQQQ offers broad exposure to the tech sector
SPDR S&P 500 ETF corresponds to the price and yield performance of the S&P 500 Index. The S&P 500 Index consists of 500 selected stocks, all of which are listed on the exchange, the NYSE or NASDAQ, and spans over 24 separate industry groups.
SPDR Dow Jones Industrial Average ETF. It seeks to provide investment results that, before expenses, generally correspond to the price and yields performance of the Dow Jones Industrial Average. The Dow Jones Industrial Average is an Index of 30 blue chip United States stocks.
Can SmarTrend be used for Trading ETF’s?
The SmarTrend system tracks over 100 ETF’s, including the three key ETF’s listed above.