ETF stands for exchange traded funds. These can be part of your offensive financial game plan and are purchased mostly in brokerage accounts.
An ETF is a compilation of company stocks that are bought and sold similar to purchasing a common stock. Shares of the ETF are purchased at a market price. The price of the ETF shares are based on the individual share prices of the compilation (team) of stocks.
The compilation can be of companies in a specific industry, a specific region or to match a popular market indicator. Once the compilation of stocks is chosen, the companies stay the same. Gains and losses are dependent on the team.
We coach our clients through the process as it is up to each investor to make the final decision as to when to buy and sell. Our role is to ask questions, investigate and provide information to make an informative decision.
“Instead of investing in 1 player, you get to invest in a group of players or a team of companies. You can still lose your investment, however, the other players help to diversify.”
John Gotschall