Home|Our Services|Our Philosophy|Client Center|Planning Ideas|Resources|Disclosure|Contact Us

Financial Briefs

More Articles  Printer Friendly Version

 

ETFs Can Provide Some Other-Worldly Benefits To Investors

ETFs may sound like aliens from the "Star Wars" movies. But they're actually an increasingly popular investment that offers several potential benefits to investors. The acronym stands for exchange-traded fund. And if you don't already have ETFs in your portfolio, you might want to consider adding some to the mix.

ETFs are securities that normally track an index, such as the well-known Standard & Poor's (S&P) 500. They are traded on a public stock exchange, so prices fluctuate throughout each trading day. Because of this liquidity, and the fact that fees associated with the investment are typically reasonable, more investors are opting for ETFs.

Technically, the ETF owns underlying assets—such as stocks, bonds, commodities, or foreign currencies—and this ownership is divided into shares for investors. Therefore, you own the ETF's investments indirectly and your shares represent their market value.

What's more, ETFs let you diversify across a wide range of underlying investments, while providing investors with other advantages such as being able to buy short or on margin. And taxable gains aren't passed through to shareholders, although you will be taxed on any gains under the usual rules when you sell an ETF.

We can help you determine whether this investment "creature" is suitable for your situation.


Email this article to a friend


Index
"New and Improved" QSBS Tax Break
If Estate Tax Repeal Is Enacted Soon, Will It Stick?
Avoid This Installment Sale Trap
What Are The 3 R's Of Roth IRAs?
Ask About Personal Residence Trusts
Foreign Intrigue In Estate Planning
The myRa Is Cut Short, But Other Options Abound
6 Ways To Close The Retirement Gap
Are You "Rich" Or Not? New Survey Hits The High Points
Why Aren't More Millennials Moving On Up And Out?
Lending Money? Watch Your Tax Step
How To Spell Estate Tax Relief
Watch Out For "Grandparent Scams"
Four Tax Strategies In Retirement
This Tax-Free Rollover Goes Right To Charity

This article was written by a professional financial journalist for William Howard & Co. Financial Advisors, Inc. and is not intended as legal or investment advice.

©2017 Advisor Products Inc. All Rights Reserved.
© 2017 William Howard & Co. Financial Advisors, Inc. | International Place II | 6410 Poplar Avenue, Suite 330, Memphis, TN 38119 | All rights reserved
P: 901-761-5068 | F: 901-761-2217 |
Disclosure | Privacy Policy | Contact Us