Looking to Buy and Sell ETFs?

Looking to Buy and Sell ETFs?ETFs can typically fluctuate up and down in value, with
ETFs, or exchange-traded funds, aren't all too muchthe value of the particular index they follow. For
different than stocks, as they are easily bought andexample, one of the most popular ETFs is known as
sold, most often, through an investment or brokeragethe Spider (SPDR), which trades under the symbol
account. Unlike common stocks, however, ETFs holdSPY. This particular ETF tracks the S&P 500 index
assets in stocks, commodities, or bonds, and trade atand will tend to follow its value movements. Other
approximately the same price as the NAV, or netpopular ETFs include the Nasdaq-100 Index Tracking
asset value, of its underlying assets over the courseStock (AMEX: QQQ), DIAMONDS Trust (AMEX: DIA),
of the trading session. This differs from mutual funds,iShares S&P 500 (AMEX: IVV), and iShares Russell
however, as an ETF does not have its NAV2000 (AMEX: IVM).
calculated every day like a mutual fund does.Some investors may see this as somewhat of a
While ETFs, and all stock market investments, aredownside, owning an ETF gives individuals the
subject to certain types of risks, investors might bediversification of an index fund, and the ability to
surprised that they can employ traditional stock tradingpurchase as little as one share, sell short, and buy on
strategies, such as limit orders, stop orders, marginmargin. Like any stock, ETFs carry investment risk, and
purchases, and short sales, when getting involved withfluctuate in value as shares are bought and sold.
an ETF investment. Of course, brokerageOverall, ETFs have become a popular way to get
commissions and fees are applicable, but this will varybroad market exposure and make money in the stock
on your brokerage house or service.market.