What are the main differences between ETFs and Mutual Funds?
The truth is you need to invest in the fund that will make you the most money. Look at rankings monthly Both ETFs and Mutual Funds allow for broad diversification or narrow sector concentration (e.g., industry, country, foreign currency, debt instead of equity) by a purchase of one single holding. They can be described as "baskets of stocks" that have some kind of common "theme." There are however several main differences: ETFs trade on exchanges like stocks and can be bought and sold at any time during the exchange trading sessions, although some of them may be extremely thinly traded. Mutual Funds, on the other hand, have to be usually redeemed or purchased only at the Net Asset Value, based on closing prices for the day. Thus, if there is a negative event, you cannot use an automated sell stop and have to ride the prices all the way to the day's close. Nevertheless, the problems with liquidity under normal economic conditions are very rare with Mutual Funds. Unlike many Mutual Funds, ETFs do not have minimums to invest, minimum holding periods or early withdrawal fees. Mutual Funds are likely to have different classes of shares A/B/or C, which may have to be held for a certain minimum time to avoid fees when selling (sometimes 2 to 3 years, or more). Both ETFs and Mutual Funds deduct managerial and operational expenses from your (growing or shrinking) investment, but when compared especially to Load Mutual Funds, ETFs on average have lower such deductions. ETF trades, on the other hand, will be garnished with brokerage commission fees. However, nowadays, at discount online brokers they are almost negligible. Highly liquid ETFs, those with large daily volumes, are complemented with options that trade on Options Exchanges. Such options may be useful in hedging larger or riskier positions. Mutual Funds are not optionable. Mutual Funds usually cannot be bought on margin or sold short by an investor. This can be done easily with ETFs. Also, all ETFs are available through almost any broker. That is not always true about Mutual Funds that have specific agreements with different brokerage houses. Unlike Mutual Funds, ETFs may be highly leveraged, buy on margin or trade options, employ short selling, or use complicated derivatives to achieve, for example, inverse performance of given indices (e.g., SKF). This may be useful for anybody wanting to employ leverage in IRA or 401K accounts. Sources: http://www.amfi.com/ratings/mutual-fund-rankings
http://www.investopedia.com/university/mutualfunds/mutualfunds.asp
What are the components of the hang seng china enterprises index?
Components of HSCEI is good target stocks to buy
What is the meaning of one point in a stock market?
What I think you may be referring to are "basis points". If that is the case, a basis point is essentially a fraction of a % (1/100). So, for every 1%, there are 100 basis points. If this did not answer your question, please let me know.
If you are referring simply to "the market is up a half a point"... then that is just one dollar. There is no real reason for calling dollars points, it is just a tradition in US markets and are not the same as basis points.
How is a stock exchange point defined and how does it correlate to percentage?
how can the stock exchage be defined ?
How do you calculate return of market index how do you calculate index of nse and bse?
For indexes like the S&P 500 or the Russell 3000, look for figures from the data's vendors, like Standard & Poor.
Because of the need to factor in dividends, splits (and other corporate actions), index reconstitutions and changing weights, calculating total return on an index can be a fairly involved process that often requires that the person calculating it exercise some judgment - so it is difficult to prescribe a set way to calculate them.
ETFs are exchange traded funds. They allow immediate diversification for smaller investors. Unlike mutual funds they allow diversity with fewer limitations - they, like stocks, can be traded intra-day (mutual funds don't allow this), are often optionable (and can therefore be both traded and hedged using options), and represent groups of underlying instruments with a common "theme" - such as currency, geographic region (Southeast Asia, China), Gold, Oil, Health Services, Financial services, or a particular Index, etc.
An ETF is Index-linked, but is not to be confused with an Index Tracking Stock. An index tracking stock is similar, but tracks a particular index, is fully optional, trades large volumes and has a tight bid/ask spread, and can be used with sell stops and automated orders. Some common index tracking stocks track the S&P 500 (spy), Nasdaq 100 (qqqq), Russell 2000 (iwm), Dow Jones 30 (dia), etc. Some indexes may have more than one tracking stock.
There is an ongoing debate in the world of finance over whether or not a mutual fund manager can outperform an index consistantly (skill in picking or luck in picking?). Furthermore, some argue that mutual fund management fees may offset any additional gains from active management. Mutual funds offer "peace of mind" to those who prefer someone else do all the working and watching, ETFs and Index tracking stocks, because they are not actively managed, may require more oversight from the individual investor.
Many ETFs outperform mutual funds without fees. Many online brokerages have ETF scanners that allow you to look them up by region, industry sector, ranked by return, or by strategy (such as Growth, Income, Speculation, etc).
Note that current ETF Assets (in 2010) total over USD 1 trillion, the number grew from about $30 billion from 1999.
What time does dow jones open?
Dow Jones doesn't open and close...it is an index that is measured on the NYSE (New York Stock Exchange). The NYSE opens at 9:30 am EST and closes at 4:00 pm. EST.
2.30pm GMT (1.30 pm during summer time ) and 9pm at night (10 pm during summer time)
What is the difference between a prop trader and a day trader?
A prop trader is someone that is trading someone else's money, "the firm," and typically making commissions on the profitable trades they make.
A day trader is someone who buys securities and sells them in the same day. Intra-day trading is a term also used.
A prop trader can be a day-trader if that is the firm or the individuals trading style.
How do you become a day trader?
Becoming a day trader is not hard, the hard part is figuring out how to actually trade. When I first started out I spent over $10k in bogus trading programs. All you have to do is pick your broker, fund your account, and start learning from your mistakes. Oh one more thing, stay away from proprietary firms.
If a interviewer asks On a scale of 1 to 10 how would you rate yourself what would be the answer?
Well no one can comment on your skill level here since we don't know you. But if you are a beginner your skill level would be "one." An expert would get a rating of "10." If you can operate a computer with little or no problem but don't feel like you're an expert, give yourself a "five" or "six." Then just give a reason WHY you gave yourself this rating. ~ T
What different jobs are there in a multimedia team?
One word Many, I work ina place where the Multimedia team is Communications. Its a private high school. They not only teach, but publish flyers, ads, promotions, websites.
Who was in the Dow 30 industrials in 1999?
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When did the stock market go to decimals?
The change started in August, 2000 with a congressional mandate, with a deadline of April 2001 for completion.
What do stock market points measure?
1 point = 1 dollar
The Dow Jones Industrial Average is comprised of the stocks of 30 companies and is the weighted average price of the shares of the 30 companies.
A change in the Dow of 150 points shows that the average price of the 30 companies changed by $150.
It's important to note that there is a complex equation that changes daily which is used to determine how many shares of each of the 30 companies should be used to compute the average. The equation is intended to account for mergers and stock splits that have occurred since the index originated.
French neuroscientists at the Cognitive Neutoscience Centre have argued that there is free-floating DNA in the Paretial Cortex which could indicate why we have the potential of free will.
What is fully taxable equivalent basis?
The taxable equivalent basis (teb) adjustment increases GAAP revenues and the provision for income taxes by an amount that would increase revenues on certain tax-exempt securities to a level that would incur tax at the statutory rate, to facilitate comparisons.
Which act makes provision for the establishment of Companies with Limited Liability?
It is the companies act 2008 wich replaced the old companies act 1973
Scrips are substitute forms of cash, or a form of proxy currency. Used in the 19th century within mining companies, scrip was used for wages when cash was short. With this scrip, employees could purchase food, clothes, ect. from the mining company's, but the mining company's only. Now-a-days, Scrip is often used as a form of Fund Raising and is most commonly known with companies such as "FundScrip".