1 = What is an ETF ?

(EXCHANGE TRADED FUND) ETF is a type of security tracks an index , sector , commodity or other asset , but which can be pu

2= What are the types of ETFs ?

i- Equity funds
ii- Fixed-Income funds
iii- Commodity funds
iv- Currency funds
v- Real estate funds
vi- Speciality funds

3- Are ETF good for beginners ?

ETF are ideal for beginner investors due to their many benefits such as low expense ratio , diversification , range of investmen

4- What risks are there in ETFs ?

Firstly , there are many ETF available in the marketincluding international and exotic ones. Hence selecting the right ETF to m

5- Can ETF make money ?

ETF funds mainly profitable due to the fluctuation of the exchange rates. They purchased the currency of different countries b

6-Can ETF be sold anytime ?

Since ETFs are traded on the stock exchange, they can be bought and sold at any time during the market hours like a stock. Th

7- How do I buy stocks in ETFs ?

Here's how to start buying ETFs
i- open a brokerage account
ii- Decide on your ETF investment stretegy
iii- Reasearch on your ETFs
iv- Buy the ETFs
v- Set up your Purchase plan
vi- Decide on your exit stretegy

8- Can you buy an ETF and sell it next day?

There are no restrictions on how often you can buy and sell stocks or ETFs

9- Are ETF good for long term?

ETFs are a great investment option for long term buy and hold investing.

10- Where does ETFs money go ?

ETF pool the financial monetary assests such as shares, debt securities such as bond and derivatives. Most ETFs are registered

11- Who owns the ETFs ?

An ETFs divides ownership of itself into shares that are held by shareholders.

12- How are ETFs regulated ?

ETFs can vary in a number of ways; Regulatory Structure. Most of the ETF are registererd with the SEC as investment compan
13- Do you pay management fees in ETF?
ETFs are subject to market fluctuation and the risk of their underlying investments. ETFs are subject to management fees and

14- Are ETF a reportable securities ?

The majority of ETF are open-end registered investment companies and their shares therfore are not reportable securities wi

15- What are the benefits of buying an ETFs ?

ETFs can offer lower operating costs then traditional open-end funds, flexible trading, greater transparency, and better tax effi

16- What is equity ?

Equity represents the value that would be returnedto a company's shareholders if all of assests were liquidated and all of the

17- What is commodity futures ?

Commodity futures contracts are agreements to buy and sell or a raw material at a specific date in a future at a particular tim

18- What is a commodity market ?

It involves buying , selling or trading a raw product, such as oil , gold or coffee. There are hard commodities , whih are genera

19- What is the best time in a day to buy an ETF?

The opening 9;30 a.m. to 10;30 a.m. is often one of the best hours of the day for trading.

20- Do ETF ever fail ?

Plenty of ETFsfail to garner the assests neccesary to cover these costs and, consequently , the ETF closures happen regularly ,

21- Are ETF safer then stocks ?

Investing in ETF is associated with lower risk as it is diversified… An ETF has a higher tansactionfee compared to when you bu

22- Are ETF a good way to invest ?

Since ETFs offer built in diversification and don't require large amounts of capital in order to invest in a range of stocks, they a

23- Do ETF pay dividends ?

ETFs pay out on a pro rate basis , the full amount of a dividend that comes from the underlying stocka held in the ETF… An ET

24- What is a difference between a ETF market price and net asset value (NAC)?
The ETF market price is the price at which shares in the ETF can be bought or sold on the exchanges during trading hours. The

25- What is Net asset value (NAV) ?

NAV (NET ASSET VALUE ) of an investment company is the company's total assests minus its total liabilities.

26- What is the difference between ETF AND MUTUAL FUNDS ?

THE main difference between ETF and mutual fund is that while ETFs can ce actively bought and sold on the exchanges , just l

27- Why ETF are so popular ?

ETFs have grown in popularity largely because they have three vattractive qualities; They are low cost , They offer tax efficien

28- How much more tax efficient ETF vs mutual fund ?

ETF acan be considered slightly more tax efficient then mutual funds for two main reasons , One ETF have their own machani

29- What are the advantages of ETF over mutual funds ?

When following a better standaed index, ETFs are more tax efficient and more liquid than mutual funds. This can be grest for

30- Are ETF cheaper then mutual funds ?

ETFs are less costly than mutual funds. There are exceptions and investors should always examine the relative cost of ETFs an

31- Why are ETFs often cited as cheaper ?

Often , when people dicuss ETFs cost advantage ,they'recomparing ETF with the broad universe of mutual funds. But ETF tend

32-Can you hold ETF in your retirement account ?

As long as your retirement account is a brokerage account , you can hold ETFs. In other words, if you can trade a stock in you

33- How is the market price of an ETF determined ?

ETF are traded on the stock exchange, they can be bought and sold at any time during market hours like a stock. In fact , the

34- What is the role of market maker ?

Market maker charge a spread on the buy and sell price, and transact on both sides of the market. They establish quotes for t

35- What are the returns for investing in ETFs ?

Investing in an ETF can potentially have two types of returns;
i- Capital gains - Investors can trade ETF like a stock by buying it at a low price and selling it at a high price to relese profit.
ii- Dividends - The fund manager usually receives dividends from the securities that comprise the ETF baskets. The dividends a

36- What is an INDEX ?

An index is made up of a basket of securities (eg bonds, commodities , equities ) that shows the movement or change in a spe

37- Does ETF have prospectus?

Yes , the prospectus document that needs to be read by a prospective that needs to be read by a prospective investor prior t

38- What should I have to pay when buying and selling ETFs ?
Like buying and selling stocks , investors need to pay brokerage commision , stamp duty, clearing fees and GST , where applic

39- What should I do before investing in ETF ?

You are advised to know about following before investing ;
i- Investment objective and stretegy of an ETF.
ii- Information on the index that the ETF is tracking.
iii- Dividend policy
iv- Fees and charges that will be borne by investor
v- Sources of trading information of the ETFs
vi- Informing about the management company

40- What is the indicative optimized portfolio value for an ETF ?

IPOV or Intraday net asset value(iNaV) is the value that is intended to approximate the value of the securities held in the portf

41- what is the difference between ETF and index funds ?

ETF can be traded throughout the day like stocks , whereas index funds can be bought and sold only for the price set at the en

42- How to select ETFs and index funds ?

There are three parameters which investors should look at while investing in ETF;
i- Total expense ratio ; low risk
ii- Tracking error ; it is the deviation between index return and the etf return. This is the important performance parameter b
iii- Liquidity ; this is an extremely important factor of an ETFs because unlike mutual funds, ETFs are bought and sold in the st

43- What is the scheme characteristics of ETF in india ?

ETFs are open ended schemes which try to replicate the return of an index it is tracking. The fund has to invest minimum 95%

44- What are the popular ETF schemes ?

Some of the popular ETF schemes are as follows ;
i- Index ETF
ii- Gold ETF
iii-Bank ETF
iv- International ETF
v- liquid ETF

45- Does liquidity matters for ETFs ?

investors and traders in any security benefit from greater liquidity - that is , the ability to quickly and effciently sell an asset fo

46- What is ETF tracking error ?

Tracking error refers to difference between the actual returns of the fund and the returns of the benchmark index it has its u

47- What is good tracking error ?

An index fund should have a tracking error of zero relative to its benchmark. Enhanced index funds typically have tracking err

48- What does low tracking error mean ?

It means error a portfolio a closely following its benchmark. High tracking errors indicate the opposite. Thus, tracking errors g

49- What is no fee ETF ?

A no fee ETF , Also known as a zero-fee ETF ,is an exchange traded fund that can be bought and traded without paying fee to

50-Can you buy ETF for free ?

you'll need to pay brokerages fees whenever you buy or sell ETF units. These fees vary depending on the online broker you ch
other asset , but which can be purchased or sold on a stock exchange the same a regular stock can… ETFs can contain investments , inclu

Hence selecting the right ETF to meet your need is the key to avoiding additional risks like political and liquidity risks that may be associat

e currency of different countries based on calculated predictions about that future performance of that currency.

th the SEC as investment company act of 1940, and they offer to the public are registered under the securities Act of 1933
re are not reportable securities within the meaning of rule 204A-1 , Except for a number of investment advisors for which the ETF is a rep

he ETF closures happen regularly , Broadly ETF investors don’t lose their investment when an ETF closes

tionfee compared to when you buy individual stocks. However the expense ratio and broker fees are usually lower then ETF .

o invest in a range of stocks, they are a good way to get started, You can trade them like stocks while also enjoying a diversified portfolio.

ying stocka held in the ETF… An ETF pays out diversified dividends , which are taxed att the long term capital gains rate , and non qualified

changes during trading hours. The net asset value of an ETF represents the value of each share's portion of the fund's underlying assests a

and sold on the exchanges , just like any other shares, one can only purchase a unit of mutual fund from a fund house even though these
 One ETF have their own machanism for buying and selling. ETFs use creation units which allow for the purchase and sale of assets in the

erse of mutual funds. But ETF tend to be cheaper than mutual funds on the whole because ETFs mostly follow a less expensive indexing st

et hours like a stock. In fact , the market price of an ETF is determined bt the demand and supply of its units , which in turn is driven by th

market. They establish quotes for the bid and ask prices.. If an investor wanted to buy an security, they would get charged the ask price, w

e the ETF baskets. The dividends are usually distributed to ETF unit holders following the deduction of management fees.

d by a prospective investor prior to investing. The prospectus discloses important information, such as the fund's objectives, fund manage

e of the securities held in the portfolio by the ETF fund manager and should closely represent the value of the fund throughout the day.
ETFs are bought and sold in the stock exchanges. If an ETF is not very liquid , you may not find enough buyers when ypu want to sell your

ickly and effciently sell an asset for cash. Investors who hold ETFs that are not liquid may have trouble selling them at the price they wan

x funds typically have tracking errors in the 1% to 2% range. Most traditional active managers have tracking errors around 4%- 7%

e opposite. Thus, tracking errors give investors a sense of how 'tight' the portfolio in question is around its benchmark or how volatile the
quidity risks that may be associated with these ETFs. ETFs can also be exposed to counterparty risk and currency risk depending on their u
pital gains rate , and non qualified dividends, which are taxed at the inventory's ordinary income tax rate.
follow a less expensive indexing stretegy. More than 75%of all dollars managed by mutual funds are invested in the more expensive activ

he fund's objectives, fund manager's background , management fees as well as the risks of investing in it.
currency risk depending on their underlying holdings.