Types of ETF's

There are several types of ETF’s, in fact there is no limit to the actual amount and this is controlled by many variables, investors, the market, prices and soon. So how do you decide which one fits your best interest?

"Finance is the art of passing money from hand to hand until it finally disappears."
-Robert W. Sarnoff

"An index is a collection of stocks (known as a basket) that represents a sector, industry, region, or stock market. The stocks within the basket are usually either price-weighted or market-weighted" - About.com

1.United States Market Index ETFs
This is probably the ETF that you are most concerned with. These are some of the most traded ETF’s in the market. The point of these is to keep up with a index.

2.Foreign Market Index ETFs
We aren’t alone in the idea of ETF’s and it isn’t exactly new either. The idea or something similar has been around since 1989. If you are looking to invest abroad then these are the ticket. Keep in mind that foreign markets are different so your investing strategy may change.

3.Sector and Industry ETFs
These deal with a certain type of product. Some examples are gold, oil, and drugs. You can simply buy one type instead of getting a whole basket of different companies.

4.Bond ETF’s
There are many of these types’ available, overseas governments here at home and also overseas corporations.

5.Commodity ETFs
These are almost the same as Industry ETF’s only you are looking at a part of the market. Keep in mind that when it comes to ETF’s you are not actually buying a product. As in you are not buying gold and getting it shipped to you. You are simply investing in gold prices.

These are only a few ETF’s; there are many types out there. In fact you could say that there are type’s with-in types. The idea is seemingly new due to its sudden rise and many investors are making ETF’s a part of their investing strategy.