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Exchange Traded Funds (ETFs)
ETFs are open-ended, registered investment companies organized under the Investment Company Act of 1940 that have
been granted certain exemptive relief from the SEC to allow secondary market trading.
ETFs are easy to trade, highly liquid, more tax-efficient than traditional mutual funds and can be bought with a minimal investment. Trading ETFs can be a successful strategy in both bull and bear markets. They are a great way to gain low cost exposure to specific sectors, industry groups or global markets.
What Are ETFs And How Do They Work
ETFs are trusts, which contain a basket of stocks that mirror the performance of recognized stock and bond indexes.
Unlike mutual funds, ETFs can be bought and sold at any point during the trading day providing liquidity not found
in open-end mutual funds. The investor can also gain broad market exposure without costing an arm and a leg.
Arguably, ETFs have become the fastest growing investment product on the financial landscape.
Advantages Of Exchange Traded Funds
The Market Edge Stock Watch module has three lists of ETFs which include all of the equity based funds. The lists are grouped as Sector, Domestic or International ETFs. By combining the power of the Market Edge 'Opinions' with the diversification offered by ETFs, a potent investment program can be structured.
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The risk of loss on a short sale is potentially unlimited since there is no limit to the price increase of a security. There is no guarantee the brokerage firm can continue to maintain a short position for an unlimited time period. Your position may be closed out by the firm without regard to your profit or loss. Short sales may only be submitted in a margin-approved account. Margin is not available in all account types. Carefully review the TD Ameritrade Margin Handbook and Margin Disclosure Document before applying for margin. Please see the TD Ameritrade Web site or contact TD Ameritrade for copies of these documents.
Past performance is not a guarantee of future results. The data contained in Market Edge is obtained from sources considered by Computrade Systems, Inc. to be reliable but the accuracy and completeness thereof are not guaranteed. Computrade Systems, Inc. does not and will not warrant the performance and results that may be obtained while using the Market Edge research service.
The Market Edge research service & Second Opinion are neither offers to sell nor
solicitations of offers to buy any security.
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S&P Capital IQ.
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© 2016 Computrade Systems, Inc.
© 2016 The McGraw-Hill Companies, Inc. S&P Capital IQ is a division of The McGraw-Hill Companies, Inc. See full Copyright for details.