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ETF Definition | What Are ETF Funds?

What are ETF funds exactly? Well, ETF is short for exchange traded funds. Many consider is one of the best investments you can make. Let’s start backward and go forward.

First of all, they are funds, in many respects like traditional mutual funds. ETF funds are baskets of securities that are chosen either by a money manager, team of analysts or a computer software program.

Just like mutual funds, they specialize in specific categories of investments and assets. If you get a small cap ETF, it will have small companies in it’s basket. The ease and affordability of these funds make them some of the best investment options around.

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An Introduction to Basic Investment Strategies

If you’re looking for new investment strategies and ideas or if you’re just starting out in developing your portfolio, these are some of the opportunities that investors are taking advantage of. There will be a summary of each investment strategy and subsequent articles that go more in-depth on each of these categories will follow.

The value investing method involves finding undervalued stocks that have good fundamentals. The most famous value investor and arguably the best in the world is Warren Buffett. He finds companies that have a good solid business model and ones with a competitive advantage over others’ in it’s industry.

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