What is an ETF and how to trade it?
The number of assets used in stock trading is growing every day; currently there are several tens of thousands of them.
What is not traded on exchange platforms - metals, currencies, cryptocurrencies, futures, securities and indices for these securities.
But still, new trading objects appear every year, for example, if earlier there were stock indices, then ETFs appeared not so long ago.
ETF - Exchange Traded Fund or translated, exchange-traded investment fund.
At its core, this is a kind of index that reflects the value of an investment portfolio created by a certain company and put up for trading in the form of one share.
For this reason, the use of ETF shares in the formation of investment portfolios of non-public pension funds in the United States is permitted.
And this is not surprising, because, in a sense, you are buying shares of an investment company, and their price is constantly growing.
In fact, ETFs are almost the only asset on which you can still apply buy and hold strategy so popular in the eighties of the twentieth century.
That is, this type of investment is excellent for long-term investments.
According to analysts, the annual growth of this market segment is planned at 15-30%, and using leverage you can easily increase this figure several times. At the same time, ETFs can be traded like a regular stock:
- There are currently over 1,000 ETFs available
- Acceptable use of leverage
- A spread is charged for opening trades
- Minimum cost of 1 share from 10 US dollars
- Minimum deposit from 100 dollars
It is possible to trade ETFs formed on the basis of not only American assets, but also assets of other countries, not excluding Russia.
If you are interested in this offer, you can try using ETFs in trading with the broker RoboForex – https://www.roboforex.com/ru/forex-trading/assets/etf/