How Do You Invest In Etfs?
Exchange-traded funds (ETFs) are a unique type of security that are part-stock and part-index. ETFs can represent shares in hundreds of companies, yet they can be traded at any time during market hours and can be bought in amounts as small as one share. There are a few things to keep in mind if you want to invest in ETFs. Think about the role ETFs will play in your portfolio. If you’re looking to find an ETF that mirrors an index like the Dow Jones, then you’ll be looking for different ETFs than someone who wants to invest in a specific industry. Remember that there are lots of foreign ETFs to choose from as well. Approach your broker with the exact number of ETFs you want to buy. You have to pay a broker’s fee every time you buy or sell this type of security. The commission is the same no matter how many shares you’re buying, though, so small trades can sometimes cost you more than you’ll make. Set, buy, sell and hold orders on your ETFs to help protect your investment. Just like with
