The variety is deep and wide, one ETF can give exposure to a group of equities, market segments or styles. By covering all major indices, sectors, industries, sizes, strategies, international and specific countries it will diversify your portfolio instantly.
Trading futures means that you trade with leverage. The initial margin, is the cost of entering the trade. Hence the amount you need to have deposited in your account to be able to open a position. The initial margin of a futures contract is a small percentage of the futures contract value. This means that you may control more capital than you have deposited in your account.
It enables investors to take positions in alternative and exotic investments that are hard to reach in any other form to small investors.
ETFs are a cost-effective way to gain exposure to a diversified portfolio of securities. They are generally less expensive than actively managed funds and even some index funds. They are usually less costly than purchasing a large number of individual shares, as there are less trading costs.
ETFs are transparent in their objectives – to achieve results in line with their market benchmark. They are also highly transparent in their holdings, with many ETF providers updating this information daily.
ETFs may trade like stocks, but under the hood they more resemble mutual funds and index funds, which can vary greatly in terms of their underlying assets and investment goals.
Bond –can include government bonds, corporate bonds, and state and local bonds. A common use for them is to generate regular cash payments to the investor. These payments come from the interest generated by the individual bonds within the fund. Bond ETFs are generally a lower risk-option.
Industry –track a specific industry such as technology, banking, or the oil and gas sector.
Commodity –is an investment in commodities like crude oil or gold and let you lets you bundle these securities into a single investment.
Currency –invest in foreign currencies such as the US dollar or British pound.
Inverse –attempt to earn gains from stock declines by shorting stocks. Shorting is selling a stock, expecting a decline in value, and repurchasing it at a lower price.
International –Are recommended for building a diverse portfolio. They generally come with lower-risk, and is an easy way to make foreign investments. These can include investments in individual countries or specific blocks of a country.
Stock –investment in stocks and are usually meant for long-term growth. They are typically less risky than single stocks, they are still considered more risky than some of the ETFs.
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Access Direct Markets Ltd is Licensed and Regulated by the Financial Services Commission, Mauritius. Lic no. IQ15000020. The Chinese version of this website is for reference only. In the event of any difference between Chinese & English version of the Website, the English version shall prevail. HIGH RISK INVESTMENT NOTICE: Transactions in CFDs and FX, futures and leveraged foreign exchange carry a high degree of risk therefore should only be undertaken with risk capital. The amount of initial margin is small relative to the value of the CFD, futures contract or leveraged foreign exchange transaction. Hence, these transactions are highly leveraged. A small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you.
