Crypto Glossary

Posted on September 13, 2021 in
Glossary

ETF (Exchange Traded Fund)

Like a stock, an exchange-traded fund – ETF can be purchased and sold during the day. As a result, ETFs often have lower costs than other forms of investment vehicles. ETFs come in a variety of types, each with a different amount of risk.

Like a stock, an exchange-traded fund – ETF can be purchased and sold during the day. As a result, ETFs often have lower costs than other forms of investment vehicles. ETFs come in a variety of types, each with a different amount of risk.

What is an ETF (Exchange Traded Fund)?

Unlike a typical stock, exchange-traded funds (ETFs) track a specific index or other assets. They can be purchased or sold on a stock market just like ordinary stocks. Depending on its structure, an ETF can be designed to track anything from a single commodity’s price to a huge and diverse group of securities. To track a certain investing strategy, ETFs might be designed.

Because it is exchanged on a stock exchange, an ETF is termed an exchange-traded fund. As shares are purchased and sold on the market, the price of an ETF’s shares will fluctuate during the trading day as well. Instead of trading on a stock exchange, mutual funds trade just once a day, after the markets shut. Comparatively, ETFs tend to be more cost-effective.

Understanding ETF

Here is a rough idea of how ETFs work: Investors buy shares of an ETF from the fund provider, which owns the underlying assets. The fund provider then tracks the performance of the underlying assets through the fund. They own a share of the fund, but not its underlying assets. An ETF that tracks a stock index may still pay lump sum dividends to investors or reinvest dividends received from the stocks that make up an index.

ETFs are meant to replicate the value of their respective assets or indexes — such as gold or a basket of stocks. However, they trade at market-determined values that are usually different from the asset’s value. An ETF’s long-term returns will also be different from its underlying asset due to expenditures.

Different types of ETF

Investors have access to a variety of ETFs that may be utilized to generate income, speculate, boost prices, and hedge or partially offset risk in their portfolios. Bond, Stock, Industry, Commodity, Currency, and Inverse are some of the most widely-used types of ETFs today.

Related Articles

5 Crypto ETFs For Singapore Investors (2022)

July 05, 2022

5 Crypto ETFs For Singapore Investors (2022)

Crypto ETF is one of the interesting investment options you might consider. See the list of 5 crypto ETFs for Singapore investors here.

15 Top Bitcoin ETFs You Can Start Investing  in 2022

January 19, 2022

15 Top Bitcoin ETFs You Can Start Investing in 2022

Bitcoin ETFs are exchange-traded funds that track Bitcoin’s value. Learn more about Bitcoin ETFs in this article.

Bitcoin (BTC) Price Prediction 2022 – 2030 According To The Crypto Experts

August 08, 2022

Bitcoin (BTC) Price Prediction 2022 – 2030 According To The Crypto Experts

Bitcoin Bullish or Bearish Trending Now! Let’s see Bitcoin (BTC) price prediction from 2022 – 2030 before you invest.

We offer investors a variety of opportunities in the digital assets industry. Our innovative platform provides access for anyone seeking investment returns anywhere, anytime. Our ecosystem aims at making finance an everyday enriching activity.

RISK WARNING ON DIGITAL PAYMENT TOKEN SERVICES

The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of Zipmex.

Before you pay Zipmex any money or DPT, you must be aware of the following.

  1. Zipmex is not currently licensed by MAS to provide DPT services. This means that you will not be able to recover all the money or DPTs you paid to Zipmex if Zipmex’s business fails.
  2. You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by Zipmex.
  3. You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
  4. You should be aware that Zipmex may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
  5. DPT held in your Hosted Wallet is not subject to the Singapore Deposit Insurance Scheme (“SDIC”) or any similar insurance or guaranty scheme of any other jurisdiction. In addition, funds stored in your Fiat Wallet do not benefit from the SDIC or any similar insurance or guaranty scheme of any other jurisdiction.

ZipUp+ products have not been approved by the Monetary Authority of Singapore (“MAS”) under the Payment Services Act 2019 and MAS has not reviewed or approved any features of these product offerings. Please review this link for the full terms and conditions and risk disclosure.