Can somebody explain ETFs in a way that even a blue-pilled pleb such as myself can understand?
ETFs
Jackson Gonzalez
Colton Reed
they buy equal parts of their target index. this doesnt need any manual labor, therefore less costs.
huge potential to cause huge crashes once they all sell at once.
John Harris
> huge potential to cause huge crashes once they all sell at once.
How do we stop that from happening?
Asher Flores
Whats a target index?
Brody Cook
etf.com
watch this, then try and ask a more specific question about whatever it is that you don't understand
Samuel Murphy
In order to understand ETF you must understand how we got here. Brief history
>in the beginning your bought single stocks directly
>then you relied on brokers to tell you what to buy
>then good brokers started 'mutual funds' and they managed your investments
>then someone said...no manager needed...just create basket of stocks and buy / sell that directly from exchange = ETF
Sebastian King
> Which are better: Mutual funds or ETFs
> How do people decide who is qualified to be an Authorized Participant
More questions coming soon, I haven't finished the video yet.
Gabriel Powell
> What is a cost basis?
> What are Capital Gains Distributions?
> What are sales loads?
> What is "Operating at scale"
> What are Securities and Futures?
> What is Index Reconstitution?
Andrew Howard
>gold/silver/platinum/etc ETFs
Grug think rock price go up.
Grug want buy rock.
But Grug no want keep rock in house.
Grug buy rock ETF.
One share rock ETF equal one rock.
Rock ETF paper, so no waste Grug space.
Rock ETF trade on rock exchange, so Grug sell ETF easier than real rock.
>s&p500 ETF
Grug think market to up.
Grug want buy all companies in market.
But Grug no have enough money.
Grug buy SPY.
1 share SPY = little bit of every company in market.
SPY go up slow, but Grug like that. Slow mean low risk.
SPY pay Grug dividend for holding.
Grug never sell SPY, even when price go down.
Grug keep getting dividend.
Grug keep buying SPY.
Grug retire on time.
>sector ETF
Grug think berry market go up.
Grug buy berry ETF.
Berry ETF have many berry company.
Grug no have to guess which company best.
Grug get gains from whole sector.
>short ETF
Grug think market go down.
Grug buy short ETF.
If market go down, short ETF go up.
>leveraged ETF
Grug want more risk.
Leveraged ETF price move more.
3 times leverage equal 3 times price movement.
Grug confident in market.
Grug buy leveraged ETF.
If market go up, leveraged ETF make Grug more money than SPY.
If market go down, Grug very sad.
Xavier Morris
>sector ETF
this is where a mutual fund can beat an ETF. Yes, not everyone can research if you should invest in GOOG or AltaVista...but paying someone to do that for you can make you much more money that buying a "search engine ETF" and watering down your google earnings with a bunch of garbage.
Evan Gonzalez
Thank you, Grug
Grayson Reed
Big thank Grug for explain. Clear as morning sky now.
Eli Williams
Can someone explain to me how the VIX works?
I mean, I understand that it is basically the premium on options contracts but how do you bundle it up into a security?
Alexander Wright
>stopping a Happening
Why would we want that?
David Thomas
Don't buy index funds. Index funds are communism.
bloomberg.com
Jackson Cooper
>t. didn’t even read the article he linked to
Aiden Nguyen
some etfs target an index, like the nasdaq or dow jones.
Isaac Morales
why do you want to know?
ETFs are generally associated with index investing which is it's own investing philosophy. if this is what you're looking for then you're asking the wrong question and missing the forest for the trees.
but as a tool they can still be used to risky market speculation which requires more specific knowledge of their mechanics.
Justin Rivera
Don’t need to. It is in their best interest to provide their product as advertised. Unless they want to get sued and their reputations thrown into the gutter.
Leo Brown
In laymans terms, ETFs try to act the same way certain financial indices (such as the Dow Jones or DAX) do, without necessarily outperforming them. This makes ETFs an attractive pick for a passive investment strategy.
Elijah Bennett
> What is a cost basis?
> What are Capital Gains Distributions?
> What are sales loads?
> What is "Operating at scale"
> What are Securities and Futures?
> What is Index Reconstitution?
Aiden Fisher
kek, this is actually pretty decent
Dylan Russell
One thing about commodity ETFs is that as opposed to most commodity exchanges, you don't need to buy futures as well. This makes them a lot more accessible for the common man.
Austin White
you can get strait forward answers to all of that from a quick search so I don't know why you're asking here. most of it isn't relevant to ETFs either.
Gabriel Ramirez
If you’re interested in ETFs you should defiantly take a look at Smart Baskets
Adam Cook
definitely *
Nolan Allen
Instead of buying a bunch of different stonks, you buy a preselected group and give the creator of the group 1% of your gains or whatever
Justin Lewis
Something tells me that most people don't want crashes to happen
Henry Howard
It was in the video link that one of the other Anons gave me. He asked me to ask him any questions that I had about the video
William Morales
that's all very technical stuff for someone entirely new to investing . again, why are you asking? you're basically asking how an engine works while trying to learn how to drive.
Jackson Ward
fine then