Why should I invest?
Investing is a great way to make your money work for you. Keeping your money out of the market can mean a loss of thousands of dollars of growth and dividends over the course of your money-earning life. The sooner you start investing, the greater your chance of benefiting from compounding.
Let’s say you invested $20 a week. After 20 years, your $20,800 investment would be worth over $34,000 (assuming a 5% compound annual return). If you’d left that money in the bank, you’d have missed out on nearly $14,000 worth of gains.
Q. What does ETF stand for?
ETF stands for Exchange-Traded fund. Here is breakdown of that means. Exchange-Traded means you can buy and sell ETFs on public stock exchanges like the Nasdaq or the New York Stock Exchange. In this context, a fund is a bundle of assets, usually stocks, bonds and/or cash. These bundles of stocks, bonds, and cash usually…
Q. Do ETFs pay dividends?
It depends on the ETF! Some ETFs definitely do pay dividends. And just like companies decide when to pay dividends to investors, managers of ETFs decide when or if an ETF will pay dividends. Usually ETFs pay dividends depending on whether the companies within the fund are also paying dividends and if the prospectus (aka…
Q. Are ETFs safe?
Investing involves risk, even when investing with ETFs. Like other investments (stocks, bonds, mutual funds), ETFs are deemed “safer” or riskier depending on what is in the investment. Risk isn’t determined by the type of investment as much as it is determined by what is ‘under the hood’ of each investment. In the finance and…
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Now That’s What I Call an Investment! ETFs Explained
You may have heard that Exchange-Traded Funds are a great first investment. But what's an ETF? We use a helpful analogy to break it down.
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