Exchange traded funds (ETFs) are a relatively new type of investment. Their popularity is increasing as more and more investors learn of the benefits they can provide to individual investors. Buy and sell ETFs online at Zions Direct for $10.95 per trade.
Use the Exchange Traded Funds Lookup Tool below to find funds, symbols, and view expenses.
Exchange Traded Fund Lookup
What are ETFs?
ETFs are securities, which represent a basket of individual stocks or bonds within narrow or broad based indexes, such as the S&P 500, Nasdaq 100, Dow Jones Industrial average, or the Lehman Treasury index. Unlike traditional mutual funds, ETFs trade like stock on an exchange, therefore, can be bought and sold throughout the day. The popularity of ETFs is growing, with assets now topping over $251.5 billion according to the Investment Company Institute. There are a number of different ETFs and are marketed under names such as streetTracks, SPDRs, HOLDRs, iShares, VIPERs, and Diamonds.
Why are so many investors attracted to ETFs?
Low Cost. More and more investors are choosing ETFs because they tend to have a cost advantage over traditional mutual funds.
Diversification. ETFs make it easy for investors to gain diversification and avoid the risk of owning individual stocks.
Tax Efficiency. ETFs tend to be more tax efficient than traditional mutual funds primarily due to the reduction of portfolio turnover caused by active management and individual shareholders.
Investment Strategies. ETFs have many strategic uses including hedging and tax loss strategies.
When are ETFs right for you?
You want a diversified portfolio with a low expense ratio.
You are interested in making a tactical investment in an industry sector.
You believe in the virtues of indexing and prefer passive investment strategies over active.
When might traditional mutual funds make more sense than ETFs?
If you plan on investing small amounts of money over time, traditional index mutual funds may be less expensive simply due to the commission you pay per ETF transaction.
Please consider the investment objectives, risks, and charges and expenses of the funds carefully before investing. Fund prospectus should be read carefully before investing. Please call Zions Direct at 1-800-524-8875 to obtain a prospectus.
Bank Deposits and Certificates of Deposit (CDs) : Are FDIC Insured
Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
Securities products and services offered by Zions Direct, Member FINRA/SIPC, a non-bank subsidiary of Zions Bank.
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