Что такое etf ( Биржевые индексные фонды )– exchange traded funds Что такое ETF ( Биржевые индексные фонды )– Exchange Traded Funds 3

What is ETF ( Exchange Traded Funds )– Exchange Traded Funds

Что такое etf ( Биржевые индексные фонды )– exchange traded funds Что такое ETF ( Биржевые индексные фонды )– Exchange Traded Funds 5

ETF (Exchange Traded Funds) - foreign exchange investment foundations, whose securities are traded on exchange, or, in other words, transparent “package”, where you can buy “whole market”, t. is. invest in all securities through a brokerage account, in the corresponding index.

ETF (Exchange Traded Funds )(Exchange Traded Funds) Is a security, which is traded, like common stocks in the world's largest markets. The constituent parts of ETF can be securities of enterprises of any region or industry., like mutual funds. Working with ETF, trader can combine the security and smooth operation of the world's major exchanges with the ability to use a huge variety of financial conditions in different countries and regions of the world.

According to the legal classification, ETFs are classified as mutual funds and fall under the same rules of the US Securities Commission. (SEC), as traditional mutual funds. but, their peculiar structure ensured the difference between the SEC requirements in terms of, concerning buying and selling. ETFs differ from mutual funds in the same way, that orders for transactions with ordinary mutual funds are carried out on the market during the daytime, but the very execution of such operations, usually, produced before the close of the market. The price assigned to them is the total value of the daily closing prices of all assets., included in this mutual fund. This is not the case with ETFs.. These funds are traded all day long, and the investor has the opportunity to fix prices for the corresponding assets at any time.

Reliability of ETFs as a stock market instrument (considering separately from the reliability of any particular asset, which they can represent) should be treated in the same way, like any certificate for the securities themselves. ETF is a much more complex instrument in terms of its content., than mutual funds. In the same time, an interesting combination of participants in a specific market, presented by brokers, financial managers and market analysts makes it easy to work with them.

If you admit, that ETFs are index funds after all, then this encourages investors to delve deeper into the philosophy of investing in indices, downplaying stock picks in favor of the overall buying or selling of a given market. And unlike most traditional index funds, investors do not need to borrow a passive "bought – hold "position. ETFs are increasingly becoming an attractive hedging instrument for day traders as well.. Both types of investors can coexist in the market, effectively strengthening everyone's position by reducing overall operating costs.

The number of ETFs is large and amounts to many hundreds. But not all of them are liquid.
Here is a list of the most popular ETFs..

What is ETF : in simple words - about the complex

ETFs originated as passive funds. They reflect the behavior of a particular financial index - stocks, bonds, real estate, goods. They can correspond to the behavior of an asset., let's say, gold or oil, a specific sector of the economy (finance, extraction of raw materials, biotechnology, etc.), geographic area (Europe, Of America, Asia, Of Russia), company values ​​- large or small capitalization, short or long term bonds, as well as their credit rating. Let's say, one of the most famous ETFs - SPDR S&P 500 (тиккер SPY) repeats the movement of the S index&P 500.

Usually, the value of one ETF share rarely exceeds $100 - that is, ETFs are sufficiently accessible to a wide range of traders. They are successfully used in their work as institutional (pension funds, management companies) investors, and individuals. Even speculators use ETFs, buying or selling the whole market. This instrument has good liquidity and availability., which allows you to use it in different investment strategies, the simplest of which is asset allocation.

Most Popular ETFs ( Exchange Traded Funds )– Exchange Traded Funds

Fund name Ticker Fund category

Bonds

20-summer government bonds TLT Bonds
20-summer government bonds X2 Fall TBT Bonds
High-risk bonds (trash) JNK Bonds
High-risk bonds (trash) HYG Bonds
Short-term government bonds (1-3 of the year) SHY Bonds
Super-short-term government bonds (T-Bills) TIP Bonds
Corporate bonds (different sectors with invest. rating) AGG Bonds

Economy sectors

Telecommunications sector IYZ Telecommunications sector
Utilities sector XLU Utilities sector
Insurance sector KIE Insurance sector
Pharmaceutical companies sector PPH Pharmaceutical companies sector
Health sector XLV Health sector
Oil Industry Equipment Manufacturers Sector IEZ Oil Industry Equipment Manufacturers Sector
Water companies sector PHO Water companies sector
Agricultural companies sector MOO Agricultural companies sector
Semiconductor Sector SMH Semiconductor sector
Semiconductor sector X2 – Height USD Semiconductor sector
Energy Sector 3X – The fall ERY Energy sector
Raw materials sector IYM Raw materials sector
Raw materials sector XLB Raw materials sector
Raw materials sector 2X – The fall SMN Raw materials sector
Raw materials sector 2X – Height UYM Raw materials sector
Companies index “clean” energy PBW Energy sector
The solar energy sector of the world TAN Energy sector
Energy sector XLE Energy sector
Energy sector 3X – Height ERX Energy sector
US Energy Sector IYE Energy sector
KBW American Banks Index KBE Financial sector
American Regional Banks Index RKH Financial sector
Index of American Regional Banks KBW KRE Financial sector
Broker-Dealer Sector USA IAI Financial sector
Sector prof. stock market participants KCE Financial sector
Regional Banks Sector boy Financial sector
Financial services sector IYG Financial sector
Financial sector XLF Financial sector
Financial sector IYF Financial sector
Financial sector VFH Financial sector
Financial Sector 2X - Drop SKF Financial sector
Financial Sector 2X - Growth APP Financial sector
Financial sector 3X – The fall DOES Financial sector
Financial sector 3X – Height FAS Financial sector

Natural resources

Raw material 2X DYY Raw material 2X
Commodity Markets Index DBC Commodity Markets Index
Market basket index. goods DBA Market basket index. goods
Commodities and Global Commodities RJA Commodities and Global Commodities
Raw materials and commodities GSG Raw materials and commodities
Industrial metals (Zinc, aluminum, copper) DBB Industrial metals
Agricultural. Goods 2X DAY Agricultural. products
Gasoline (USA) UGA Gasoline (USA)
Coal COLL Coal
Steel SLX Steel
Silver SLV Silver
Gold X2 GLD Gold
Gold X2 - Fall DZZ Gold
Natural gas (USA) ROTTEN Gas, oil + gas
Oil and gas sector 2X – Fall DUG Gas, oil + gas
Oil and gas sector 2X – Height YOU Gas, oil + gas
Oil OIL Oil
Oil DBO Oil
Oil (USA) USE Oil
Oil X2 – Height DXO Oil
Oil X2 – The fall SCO Oil
Oil X2 - Growth UCO Oil

Country ETFs ( Exchange Traded Funds )– Exchange Traded Funds

Austria Stock Index EWO Other country
Belgium stock index EWK Other country
Germany stock index EWG Other country
Hong Kong Stock Index EWH Other country
India Stock Index INP Other country
Spain Stock Index EWP Other country
Italy stock index EWI Other country
Latin America S Stock Index&P Latin America 40 ILF Other country
Malaysia Stock Index EWM Other country
Mexico Stock Index EWW Other country
Netherlands Stock Index EWN Other country
Oceania Stock Index (without Japan) EPP Other country
Russian stock index RSX Other country
Singapore Stock Index EWS Other country
United Kingdom Stock Index EWU Other country
Taiwan Stock Index EWT Other country
France stock index EWQ Other country
Switzerland stock index EWL Other country
Sweden Stock Index EWD Other country
South Australia Stock Index EWA Other country
South Korea Stock Index EVE Other country
Brazilian Stock Index EWZ Other country
Indian Equity Index “Tree of wisdom” EPI Other country
China Stock Index (FTSE/Xinhua China 25) FXI Other country
China Stock Index (FTSE/Xinhua China 25) X2 – The fall FXP Other country
Index of Japanese stocks EWJ Other country
DJA Index MORNING US indices
Nasdaq-100 Index QQQQ US indices
Index S&P500 SPY US indices
Index S&P500 X2 Fall SSO US indices

Global ETFs ( Exchange Traded Funds )– Exchange Traded Funds

New Frontier Global Dynamic Balanced Index PCA Global ETFs
Index 1000 largest non-US companies (Bank of New York Europe index 100 ADR) PEF Global ETFs
Nasdaq-100 Index Fall QID Global ETFs
Russel Index (stock “growth”) IWP Global ETFs
Russel Index 1000 (Promotions “growth”) IWF Global ETFs
Russel Index 2000 (Promotions “growth”) IWO Global ETFs
Index S&P 500 shares “growth” IVW Global ETFs
Asian ADR Index (Bank of New York Asia index 50 ADR) ADRA Global ETFs
Asian Stock Index S&P Asia 50 THAT Global ETFs
Stock index “growth” VUG Global ETFs
Stock index “growth” mid-cap MidCap 400 IJK Global ETFs
World Stock Index (without USA) VOICE Global ETFs
Developed Countries Equity Index (without USA) (MSCI EAFE) EFA Global ETFs
American Closed-End Funds Index (индекс Claymore CEF Index) GCE Global ETFs
European ADR Index (Bank of New York Europe index 100 ADR) ADRU Global ETFs
Index of European stocks S&P Europe 350 IEV Global ETFs
European Emerging Markets Index S&P GUR Global ETFs
Developed Countries Index (without USA) SEE Global ETFs
Fund of leading European companies (Dow Jones Euro Stoxx index 50) DID Global ETFs
Fund of leading European companies (Dow Jones STOXX Index 50) FIRE Global ETFs
Fund of leading European companies (MSCI Europe Index) VGK Global ETFs
Fund of leading European companies, members of the Economic and Monetary Union (MSCI EMU index) EZU Global ETFs
Fund of leading European companies, traded on the US market EKH Global ETFs
Oceania Leading Companies Fund (MSCI Pacific Index) VPL Global ETFs
Money market fund UEM Global ETFs
High risk fund (index S&P Target Risk Aggressive) AOA Global ETFs
Reduced risk fund (index S&P Target Risk Moderate) AOM Global ETFs
Moderate Risk Fund (index S&P Target Risk Growth) AOR Global ETFs
  15 principles of successful investing by George Soros

The whole world of ETF index funds on the map

Что такое etf ( Биржевые индексные фонды )– exchange traded funds Что такое ETF ( Биржевые индексные фонды )– Exchange Traded Funds 8

 

Fund name Designation Daily. turnover Assets, $

Popular global ETFs

Market Vectors Agribusiness AMEX: MOO 1M 944M
iShares S&P Global 100 Index NYSE: IOO 281K 893M

Popular ETFs in Emerging Markets

Vanguard Emerging Markets Stock AMEX: pre-university education 3.6M 5.9B
BLDRS Emerging Markets 50 ADR Index Nasdaq: ADRE 500K 505M
iShares MSCI Emerging Markets Index AMEX: EEM 12K 23M

Popular BRIC ETFs

Claymore/BNY BRIC NYSEArca: EEB 430K 610M
SPDR S&P BRIC 40 AMEX: BIK 230K 189M

Popular ETFs from other countries

Brazil
iShares MSCI Brazil Index
AMEX: EWZ 19M 5.66B
Mexico
iShares MSCI Mexico Invstbl Mkt Index
AMEX: EWW 3.5M 904M
Canada
iShares MSCI Canada Index
AMEX: EWC 2.2M 1.72B
South Africa
iShares MSCI South Africa Index
AMEX: EZ 360K 370M
Latin America
iShares S&P Latin America 40 Index
AMEX: ILF 2.7M 2.23B

Europe ETF ( Exchange Traded Funds )– Exchange Traded Funds

Европа ETF

Fund name Designation Daily. turnover Assets, $

Popular ETFs in Europe

iShares S&P Europe 350 Index NYSEArca: IEV 720k 1.60B
iShares MSCI EMU Index NYSEArca: EZU 596k 953.51M
Vanguard European Stocks NYSEArca: VGK 489k 2.13B
SPDR DJ Euro STOXX 50 NYSEArca: DID 232k 224.10M

Popular ETFs in Europe

Russia
Market Vectors Russia ETF
NYSEArca: RSX 1,770k 861.27M
Germany
iShares MSCI Germany Index
NYSEArca: EWG 1,100k 601.16M
Great Britain
iShares MSCI United Kingdom Index
NYSEArca: EWU 957k 748.44M
Italy
iShares MSCI Italy Index
NYSEArca: EWI 285k 156.92M
Austria
iShares MSCI Austria Index
NYSEArca: EWO 286k 184.46M
Switzerland
iShares MSCI Switzerland Index
NYSEArca: EWL 277k 385.53M
France
iShares MSCI France Index
NYSEArca: EWQ 251k 294.61M
Sweden
iShares MSCI Sweden Index
NYSEArca: EWD 213k 188.38M
Spain
iShares MSCI Spain Index
NYSEArca: EWP 203k 342.39M
Holland
iShares MSCI Netherlands Index
NYSEArca: EWN 109k 191.01M

Asia ETF ( Exchange Traded Funds )– Exchange Traded Funds

Азия ETF

Fund name Designation Daily. turnover Assets, $

Popular ETFs in Asia

iShares MSCI Pacific ex-Japan AMEX: EPP 823K 2.60B
Vanguard Pacific Stock ETF AMEX: VPL 584K 1.45B
SPDR S&P Emerging Asia Pacific AMEX: GMF 40K 163.7M
iShares S&P Asia 50 Index NYSE: THAT 40K 36.00M

Popular ETFs in Asia

China
iShares FTSE/Xinhua China 25 Index
NYSE: FXI 32M 6.12B
Japan
iShares MSCI Japan Index
AMEX: EWJ 29M 6.66B
Taiwan
iShares MSCI Taiwan Index
AMEX: EWT 15M 2.27B
South Korea
iShares MSCI South Korea Index
AMEX: EVE 12M 1.85B
Hong Kong
iShares MSCI Hong Kong Index
AMEX: EWH 6.7M 1.46B
Singapore
iShares MSCI Singapore Index
AMEX: EWS 3.0M 1.20B
Australia
iShares MSCI Australia Index
AMEX: EWA 2.6M 852.91M
Malaysia
iShares MSCI Malaysia Index
AMEX: EWM 1.8M 381.36M
India
iPath MSCI India Index
NYSE: INP 780K N/A

America USA ETF ( Exchange Traded Funds )– Exchange Traded Funds

Америка ETF

Fund name Designation Daily. turnover Assets, $

Popular US ETFs

SPDR S&P 500 AMEX: SPY 364M 91.90B
PowerShares QQQ NasdaqGM: QQQQ 229M 18.09B
iShares Russell 2000 Index AMEX: ETC. 124M 16.21B
DIAMONDS Trust, Series 1 AMEX: MORNING 31M 9.24B

ETF, correlated with underlying assets

Gold
SPDR Gold Shares
NYSE: GLD 19M 21.47B
Silver
iShares Silver Trust
AMEX: SLV 8.0M 2.87B
Oil
United States Oil
AMEX: USE 13M 1.62B
Natural gas
United States Natural Gas
AMEX: ROTTEN 7.8M 1.12B

Most liquid industry ETFs in the US

Financial Select Sector SPDR AMEX: XLF 237M 11.7B
Energy Select Sector SPDR AMEX: XLE 46.5M 8.00B
Materials Select Sector SPDR AMEX: XLB 14.1M 1.39B
Semiconductor HOLDRS AMEX: SMH 13.5M 1.05B
Industrial Select Sector SPDR AMEX: XLI 12.4M 1.60B
Technology Select Sector SPDR AMEX: XLK 11.4M 2.34B
Oil Service HOLDRS AMEX: OIH 11.3M 2.77B
Retail HOLDRs AMEX: RTH 8.7M 427M
Consumer Discretionary SPDR AMEX: XLY 8.2M 1.05B
Utilities Select Sector SPDR AMEX: XLU 7.0M 2.22B
Health Care Select Sector SPDR AMEX: XLV 6.0M 2.39B
Consumer Staples Sector SPDR AMEX: XLP 5.3M 2.91B
Regional Bank HOLDRs AMEX: RKH 3.0M 453M
Pharmaceutical HOLDRS AMEX: PPH 1.0M 1.65B
Biotech HOLDRs AMEX: BBH 208K 1.47B
Internet HOLDRs AMEX: HHH 84K 292M
Telecom HOLDRS AMEX: TTH 60K 158M
Software HOLDRS AMEX: SWH 53K 143M
  CIT Group: for herself

Information on ETFs provided by the Investment Company “DUNTONSE“

ETF types ( Exchange Traded Funds )– Exchange Traded Funds

For, to effectively choose one or another ETF for trading, a novice investor or speculator needs to clearly structure an array of ETFs, represented on the stock market.
The following types of ETFs are presented on the stock market: Stock ETF, Commodity ETF, Bond ETF, Currency ETF, Index ETF, Reverse ETF, ETF with rate of change.

    • Stock ETF - security, which displays the dynamics of a certain set of shares. Mostly, ETF data displays a set of stocks according to a particular industry or country. It could be, eg, energy sector, industrial sector. Or ETFs may include stocks, issuers located in China.
    • Commodity ETF - ETFs, which displays the price of physical goods. These goods can be agricultural products., natural resources and also valuable metals. A commodity ETF is primarily focused on a specific commodity. At the same time, such an ETF may be based on a physical commodity., which is in a specific storage location. Also, a commodity ETF can be based on a futures contract for the corresponding commodity.. Less common ETFs that display commodity indices in their value, which, in turn, can be calculated on the basis of a variety of goods in the form of a combination of physical goods and various derivatives.
    • Bond ETF. Bonds are the underlying asset for ETFs of this type.. This, in turn, allows you to trade debt financial instruments through the stock market.
    • Currency ETF - ETFs, which displays the value of the corresponding currency. This type of trading fund provides the ability to trade currency pairs, without entering the Forex market.
    • Index ETF - ETFs, which displays the dynamics of a specific index, so close, as much as possible. Sure, an index ETF can trade at a discount or premium to the index. But these time periods are very small, because very quickly the difference is leveled by arbitration on the part of institutional investors.
    • Reverse ETF - ETF constructed with a variety of derivatives. The purpose of this design is to form a feedback between the ETF price and the corresponding index or set of shares.. What does, if a certain index has a downward trend, then the reverse ETF will grow. And vice versa, if a certain index has a growing dynamics, then the reverse ETF will fall. This type of ETF is very often used by institutional investors., which have restrictions on trading short positions. therefore, to hedge your risks in case of market or sector falls, institutional investors can buy this type of ETF.
    • ETF with rate of change. These ETFs are based on a variety of assets. At the same time, the main feature of these funds is the presence of a certain coefficient of change of this ETF in relation to the underlying asset. This ratio, usually, has the meaning 2 or 3. Therefore, this type of ETF can be called double or triple.. I.e, if we are considering a double ETF, then it grows twice as much, how its underlying asset is growing. And accordingly, the fall of this ETF will be twice as large as the fall of its underlying asset. These ETFs allow for more aggressive speculation, at the same time, the risks of trading with these instruments are also increased.

At the same time, a single ETF can combine the characteristics of several types, the above. It could be, eg, index inverse ETF at odds 3. Direxion Daily S meets these characteristics&P 500 Bear 3X ETF (SPXS).

The table below shows examples of the described types of ETFs.

View ETF

Name

Ticker

Stock ETF

Industrial Select Sector SPDR ETF

XLI

WBI Tactical High Income Shares ETF

WBIH

iShares MSCI Australia

EWA

Commodity ETF

United States Natural Gas

ROTTEN

iShares Gold Trust

I TAKE

United States Brent Oil

BNO

Bond ETF

iShares 20+ Year Treasury Bond

TLT

iShares 7-10 Year Treasury Bond

IEF

iShares National Muni Bond

MUB

Currency ETF

iShares Currency Hedged MSCI Japan

HEWJ

iShares Currency Hedged MSCI Canada

HEWC

Index ETF

SPDR S&P 500 ETF

SPY

PowerShares QQQ ETF

QQQ

iShares Russell 2000 Value

IWN

Reverse ETF

Direxion Daily Jr Gld Mnrs Bear 3X ETF

JDST

Direxion Daily S&P Biotech Bear 3X ETF

LABD

Direxion Daily Energy Bear 3X ETF

ERY

ETF with rate of change

Direxion Daily FTSE China Bull 3X ETF

YINN

Direxion Daily Energy Bull 3X ETF

ERX

Direxion Daily S&P 500 Bear 3X ETF

SPXS

TOP 9 ETF of funds by popularity (capitalization)

  • Infographics: TOP-9 ETF of funds by popularity (capitalization)
  • SPDR S&P 500 ETF.
  • iShares Core S&P 500 ETF.
  • Vanguard Total Stock Market ETF.
  • CRSP US Total Market Index.
  • Invesco QQQ.
  • Vanguard FTSE Developed Markets ETF.
  • iShares Core U.S. Aggregate Bond ETF.

What is better than stocks or ETFs?

Promotions gives you more control over your individual investments and allows you to invest and potentially influence the management of individual companies in your portfolio, while ETF allow you to either track a larger market index, or rely on the experience of, who manages the fund.

How ETF Funds Work?

An authorized participant buys a large package ETF on the open market and transfers them to the depository, getting back an equivalent basket of individual shares, which can then be sold on the open market or returned to its lender.
How ETF works

Investment fund purchases a large diversified portfolio of assets, and then sells it piece by piece. For this, the fund issues its own shares.. I.e, by buying one ETF share, an investor invests money in several attractive instruments at once.

A simple analogy: let's say, you want to try some exotic dish. The ingredients are expensive for him., and some can only be bought in bulk. Moreover, you are not sure, how exactly this dish should be prepared. In this situation, it is easier to order it in a cafe.. There in the kitchen there are all the necessary products, a professional chef has already prepared a large saucepan and will be happy to serve you a couple of plates. And this is not a luxury, and savings: one serving of the dish will cost you less than even the most profitable wholesale purchase.

The same happens with ETFs.:

In this way, ETF is a convenient way to reduce risk and use many instruments at the same time.

There is a tool similar to ETF - mutual fund. It allows you to pool capital with other investors and get a share in the total assets of the fund.. When choosing between mutual funds and ETFs, keep in mind the differences, eg, in costs.

What ETFs can you buy?

The first ETFs appeared on the Moscow Exchange in April 2013 of the year. Now there is represented 15 ETF from two asset management companies. The list of available funds can be found on the Mosbirzh website (1), and full information on them - on the website of the providers (FinEx (2), ITI Funds (3)).

Let us briefly outline the possible directions of investments and the names of the funds., which correspond to them.

Country-specific stock index

USA (FXUS), Great Britain (FXUK), China (FXCN), Germany (FXDE), Japan (FXJP), Australia (FXAU), Kazakhstan (FXKZ).

The Russian RTS Index is based on 2 ETF fund: FXRL and RUSE.

A specific branch of the economy
FXIT - its index includes only stocks of American IT companies (Apple, Microsoft, Visa, Mastercard, IBM, etc.)
Bonds

Russian corporate Eurobonds (FXRB, FXRU, RUSB): Gazprom, Sberbank, Rusnano, Lukoil, etc..

Short-term US Treasury bonds (FXMM)

Gold (FXGD)
How to choose an ETF

The general recommendation for an investor when choosing an ETF is to choose that market and industry, which are interesting to him, are well understood and according to which he owns the forecasts of experts.

But it may be so, that the economic situation is unstable, there are prerequisites for, that even a familiar market will "storm". In this case, it is most reasonable to choose an ETF on a stable asset - gold.. Another plus of buying ETFs for gold is VAT exemption., which would have to be paid in the usual procedure for buying precious metals.

Most ETFs - index, that is, it is a tool for long-term investment. Trade ETFs in Brief- and in the medium term it makes no sense. Other tools are suitable for this purpose., eg, index futures. Or the so-called shoulder ETFs, which, although tied to the index, but traded with borrowed funds, increasing both potential profit, and potential losses.

Before using any tool, including ETF, the investor needs to figure out the basic things, concepts, technical analysis - you can study yourself or resort to the advice of a professional consultant.

How much does an ETF share cost?

so, buying ETF allows you to invest in international stock market and buy shares of leading companies, as well as bonds and gold. Exist 2 ETF stock price type: settlement and market.

The formula for determining the estimated price is simple: the net asset value of the fund is divided by the number of shares issued by the fund.

Example

The hypothetical fund has 1 company X share and 1 share of company Y - by 300 rubles each.

The fund's net asset value will be 300 + 300 = 600 rubles.
If released 300 shares, then the estimated price will be 2 rubles per share.

The net asset value of real ETF funds and the estimated prices of their shares can be found on the websites of their providers..

In addition to the estimated price, the market price of the share is also important - that is, that, which is actually offered for it on the stock exchange. It is regulated by market makers. These are liquidity providers, which support a certain trading volume and spread. Their function is regulatory.

You can even buy one share of an ETF fund on the Moscow Exchange. Their price is from 180 to 4150 rubles apiece. The average market price changes many times per day, up-to-date information can be found on the Mosbirzh website .

As you can see, the entry threshold is really low - buying an ETF is cheaper than collecting a similar diversified portfolio on your own. for example, gold on the Moscow Exchange costs about 2780 rubles per gram, you can buy a minimum 10 grams. For comparison: 1 gold ETF share is worth about 600 rubles.

How to buy ETF

Anyone can buy ETF. Some civil servants are an exception., who are prohibited from using foreign financial instruments (and ETFs are considered just like that) - heads of state departments, FSB employees, etc..

You can buy several ETFs at once and make a well-diversified investment portfolio from them. This requires a brokerage account or individual investment account. (IIS). You can open an account with any broker. You will give him instructions for buying and selling on the exchange..

Advice

If you are planning a long-term investment (that is, ready at least 3 keep money in the account), then choose IIS more profitable: it can be used to return NDFL on 13% from invested funds or not to pay personal income tax on investment income.
Two more important parameters:
  • Costs. When trading ETFs, they are negligible.: exchange and brokerage commissions are measured, respectively, tenths and hundredths of a percent of the invested funds.
  • Tax. Received investment income from ETF (as well as from other financial instruments) taxed at the rate 13%. This amount broker withholds and transfers to the budget independently (if the investor is not exempted from personal income tax for using IIS).

What determines the profitability of ETF shares

Making a decision, which assets will be included in their portfolio, ETFs most often rely on a specific stock index.

Index Is not a number, and the list. Namely - a list of companies, whose securities the exchange or the fund itself considers important. It is also called the index basket..

Key indicator - index value. This is already some hypothetical number., which for different indices is calculated in different ways. Absolute index values ​​are not important. Only his fluctuations in time matter.: they reflect the general condition of assets, companies included in the index. If securities get cheaper, the index falls - and vice versa.


Example
The MSCI USA Index includes stocks 622 the largest and most profitable US companies. Its value reflects the general state of the American stock market.. The higher it is, the better and more expensive the shares are sold. FROM 2016 by 2018 year the value of the MSCIUSA index increased (6)c 2 535 points to 3 0780 points (21%).

By choosing an index, ETFs buy securities from their member companies (there can be hundreds of them - a complete list of assets for each fund can be found on the provider's website (7)). In this way, fund shareholders in each of them receive their share, and the share price is tied to the index value.

As you can see, investing in ETFs, easy to track the profitability of your investments. If the index rose by 10% - ETF shares rise in price by the same amount. The exact dependence and profitability of shares can also be found from the fund's documentation on the provider's website..

ETFs and sanctions
Since ETF is an international financial instrument, investors may be worried, will the sanctions pressure affect the profitability and safety of investments?.

Outcomes:

  • ETFs are an easy and relatively inexpensive way to diversify your portfolio.
  • To trade ETFs, you need a brokerage account or IIS.
  • On the Moscow Exchange traded 15 ETF. You can invest in stocks, bonds and gold.
  • It's easy to buy ETFs - you can do it through a broker.
  • ETF is a long-term investment tool.
  • Sanctions have no negative impact on ETFs available to a Russian investor.
Scroll to Top