What is S & P ETF?

S & P® ETF is an investment vehicle similar to a mutual fund that can be traded as stocks. It monitors the performance of the largest companies based in the United States. Such a fund is correlated with 500® Standard & Poor's, an index that monitors the best 500 US shares in terms of market capitalization. Investors acquire an exhibition by some of the strongest companies in the country via S & P® ETF in a small percentage of what it would cost to invest in these companies individually. The price of the fund is based on market factors rather than net values ​​of activated shares. The ETF -related ETF value is based on stock performance in this index. In the case of S & P® ETF Fond, it only invests in the cream of American companies. Investors can buy and sell a fund with flexibility that a typical mutual fund, which also brings together investment capital from multiple sources, cannot provide.

sharesIncluded in S & P® ETF are based on an index known as the 500® Standard & Poor. Standard & Poor'S®, a country of financial services, monitors 500 shares on the US market to calculate this index. The shares are evaluated in terms of their market capitalization, which is the amount of shares that investors own from the shares multiplied by its current market price. Any or all shares included in the S&P 500® can be included in the ETF Fund dedicated to the index.

For example, some funds establish stocks that include on certain sectors of the market. Another type S & P® ETF can choose certain shares from the TOP 500 to include the fund based on the analysis of the fund manager of their future Prospekuts. Other funds can be directly associated with the S&P 500® Index, which average the prices of all 500 shares.

It is important that investors note that the price of S & P® ETF is determined in the same way as it was a stock. While other mutual funds are appreciated on the basis of the value of all assets included, also known as a net throwA note of assets, ETF derives its value from the investor action. If it buys more investors than its sale, the price will increase. Will drop if it sells more investors than the purchase.