What do ETFs look and act like?
ETFs were introduced as securities representing a well-known index such as the S&P 500 or the NASDAQ. However, ETFs can also represent investment styles, such as value investing or growth investing, and sectors of the economy such as banking, consumer cyclicals or basic materials. Additionally, ETF’s can offer investments in most international exchanges and foreign economies such as France, Canada, Indonesia, Korea and so on. This gives us the ability to construct portfolios from segments that appear favorable in the present economic situation and to avoid those that are out of favor.
