How Do You Buy Index Etfs?
Exchange-traded funds (ETFs) track a specific index of securities. This means that a single ETF stock represents up to several hundred companies in a certain industry, country or region. One of the advantages of buying ETF indexes is that you can purchase them with a relatively small amount of investment capital, unlike regular index funds. You should know a few things before you buy index ETFs. Step 1 Research the name of the ETF for the index you’d like to buy. The ETFs have different names and nicknames from their index counterparts. For example, the Dow Jones Industrial average ETF index is traded under the symbol DIA and commonly referred to as Diamond. Step 2 Contact your stockbroker with the number of ETF index shares you’d like to buy. ETFs are traded on the open stock exchange and can only be bought during normal trading hours. You’ll have to pay a broker’s commission fee for your purchase regardless of whether or not you use a real broker or an electronic one. Step 3 Diversif
