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.