ETF or Exchange-Traded-Fund is in effect a set of securities that, like any other stock, are traded on an exchange. The ETFs are often based on an underlying index, for example the SPDR S&P 500 ETF, that tracks the S&P 500 Index.
An ETF can include one or more types of instruments including stocks, bonds, and commodities.
Unlike mutual funds that are traded only once a day, an ETF can be traded throughout the day and is subject to market volatility.
An ETF is an attractive instrument on account of its lower expense ratios. The brokerage is also lower when compared to buying single stocks.
Want to make ETFs a part of your portfolio? Orient Global Services (OGS) offers the best tools for investing in ETFs right now. Thanks to ETFs amazing expense ratios and tax efficiency than mutual funds, they often offer an affordable way to build a diversified portfolio. The transactions are safe as they take place on a regulated exchange, exactly like stocks. ETFs also provide plenty of liquidity, can be traded on margin, and provide intraday trading opportunities. ETFs allow traders to manage their portfolio risk using derivatives, owing to the fact that a large number of them are
optionable. OGS will help you and make the entire process easy for you.