ETFs are portfolios of stocks, bonds or in some cases other investments that trade on a stock exchange much the same as a regular stock does.
But, still, many active investors have been able to see opportunity in problems with the stock market.
And one of the best ways to do that has been to use inverse ETFs, or ETFs that move opposite to market direction.
Starting just two years ago, the firm's assets now exceed $20 Billion and make it the fifth largest ETF provider in America and the seventh largest in the world, and so far, in 2008, Proshares ranks second in growth among all U.
S.
ETF funds.
They have 64 ETFs that offer short exposure and double exposure in a wide range of investment options including major indexes and major sectors like Oil and Gas, Financials, international and even Treasury Bonds.
The key advantages of ETF's over stocks and Mutual Funds are: * ETFs Have Lower Expense Ratios: Though the differences between the average expense ratios of ETFs, index funds, and actively managed mutual funds might seem small, over time they affect returns (profits) substantially * Have No Minimum Investment Requirements * Provide More Trading Flexibility * Offer Tax Advantages Lower taxes than actively managed funds Deferred tax bills * Reduce the Risk of Fraud They are generally more transparent than mutual funds.
* They Offer Options and Short Selling * Have Lower Volatility Than Individual Stocks * Are Less Risky Than Individual Stocks * Make Asset Allocation Easy For instance, if you decide that your portfolio should contain 60% stocks, 30% bonds, and 10% commodities, you can buy just three ETFs that track separate stock, bond, and commodities indexes * Make Diversification Easy and Affordable
But, still, many active investors have been able to see opportunity in problems with the stock market.
And one of the best ways to do that has been to use inverse ETFs, or ETFs that move opposite to market direction.
Starting just two years ago, the firm's assets now exceed $20 Billion and make it the fifth largest ETF provider in America and the seventh largest in the world, and so far, in 2008, Proshares ranks second in growth among all U.
S.
ETF funds.
They have 64 ETFs that offer short exposure and double exposure in a wide range of investment options including major indexes and major sectors like Oil and Gas, Financials, international and even Treasury Bonds.
The key advantages of ETF's over stocks and Mutual Funds are: * ETFs Have Lower Expense Ratios: Though the differences between the average expense ratios of ETFs, index funds, and actively managed mutual funds might seem small, over time they affect returns (profits) substantially * Have No Minimum Investment Requirements * Provide More Trading Flexibility * Offer Tax Advantages Lower taxes than actively managed funds Deferred tax bills * Reduce the Risk of Fraud They are generally more transparent than mutual funds.
* They Offer Options and Short Selling * Have Lower Volatility Than Individual Stocks * Are Less Risky Than Individual Stocks * Make Asset Allocation Easy For instance, if you decide that your portfolio should contain 60% stocks, 30% bonds, and 10% commodities, you can buy just three ETFs that track separate stock, bond, and commodities indexes * Make Diversification Easy and Affordable