Bond ETFs are very much like bond mutual funds in that they hold a portfolio of bonds that have different strategies and holding periods

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What Is a Bond ETF? Some examples include:
Treasury Bond ETFs (examples include: SCHO, PLW)
Corporate Bond ETFs (AGG, LKOR, SPLB)
Junk Bond ETFs (JNK, HYG)
International Bond ETFs (BNDX, IYH)
Floating Rate Bond ETFs (FLTR)
Convertible Bond ETFs (ICVT)
Leveraged Bond ETFs (TMF)
Investors who are unsure of what type to invest in should consider total bond-market ETFs, which invest in the entire U.S. bond market.
Bond ETFs offer many of the same features of an individual bond, including a regular coupon payment. Understanding Bond ETFs
Types of Bond ETFs
Advantages and Disadvantages of Bond ETFs
Bond ETFs vs. Bond Mutual Funds vs. Bond Ladders
Frequently Asked Questions
Bond exchange-traded funds (ETFs) are a type of exchange-traded fund (ETF) that exclusively invests in bonds. Bond ETFs tend to be more liquid and cost-effective than bond mutual funds, and offer diversified bond holdings across a range of bond types, from U.S. Treasuries to junk bonds. These are similar to bond mutual funds because they hold a portfolio of bonds with different particular strategies—from U.S. Treasuries to high yields—and holding period—between long-term and short-term.
Bond ETFs are passively managed and trade, similar to stock ETFs on major stock exchanges.

Bond ETF

Currency ETFs are financial products built with the goal of providing investment exposure to forex currencies.

Here's why investors started pouring trillions into exchange-traded funds

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What Is a Currency ETF? Invesco CurrencyShares® Canadian Dollar Trust (FXC)
Invesco CurrencyShares® British Pound Sterling Trust (FXB)
Invesco DB US Dollar Index Bearish Fund (UDN)
WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU)
ProShares UltraShort Euro (EUO)
In the U.S., the U.S. Dollar Index is one of the most closely followed gauges of the U.S. dollar’s performance. Ten of the largest currency ETFs by assets under management (AUM), as of January 2021, include the following:
Invesco CurrencyShares® Euro Currency Trust (FXE)
Invesco DB US Dollar Index Bullish Fund (UUP)
Invesco CurrencyShares® Swiss Franc Trust (FXF)
Invesco CurrencyShares® Japanese Yen Trust (FXY) Investors can invest in this Index through three popular funds:
Invesco DB US Dollar Index Bullish Fund (UUP)
Invesco DB US Dollar Index Bearish Fund (UDN)
WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU) Through currency ETFs, investors can have access to structured investment exposure in the foreign exchange market—the largest market in the world—through a managed currency portfolio.

Currency ETF

An exchange traded fund (ETF) is a basket of securities that tracks an underlying index. ETFs can contain investments such as stocks and bonds.

Table of Contents
What Is an ETF?
Types of ETFs
How to Begin Investing in ETFs
How to Buy and Sell ETFs
Real-World Examples of ETFs
Advantages and Disadvantages of ETFs
ETF Creation and Redemption
ETFs vs. Mutual Funds vs. Stocks
An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can. When an ETF wants to issue additional shares, the AP buys shares of the stocks from the index—such as the S&P 500 tracked by the fund—and sells or exchanges them to the ETF for new ETF shares at an equal value. To bring the ETF’s share price back to its NAV, an AP will buy shares of the ETF on the open market and sell them back to the ETF in return for shares of the underlying stock portfolio. ETF share prices fluctuate all day as the ETF is bought and sold; this is different from mutual funds that only trade once a day after the market closes.
ETFs can contain all types of investments including stocks, commodities, or bonds; some offer U.S.-only holdings, while others are international.

Exchange Traded Fund (ETF)  and Overview

Exchange-traded notes (ETNs) are a type of unsecured debt security that tracks an underlying index of securities and trades on a major exchange like a stock.

Barclays Launches First-Ever No-Fee Exchange Traded Notes

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Expand Investors don't need to own the underlying securities of the index they track.
Exchange-traded notes trade on major exchanges.
Exchange-traded notes don't make regular interest payments.
ETNs have default risk since the repayment of principal is contingent on the issuer's financial viability. Since ETNs trade on major exchanges like stocks, investors can buy and sell ETNs and make money from the difference between the purchase and sale prices, minus any fees. Tracking errors happen if there are credit issues with the issuer and the price of the ETN deviates from the underlying index. Due to the varying prices of ETNs, investors who sell an ETN before maturity can realize a large loss or gain.

Exchange-Traded Notes (ETN)

Exchange traded products (ETPs) are types of securities that track underlying securities, an index, or other financial instruments. ETPs trade on exchanges similar to stocks.

ETFGI reports assets invested in ETFs and ETPs listed globally broke through the $7 trillion milestone at the end of August 2020

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Expand What Are ETPS?
Types of ETPs
ETPs vs. Mutual Funds
Growth of ETPs
Real World Example
Exchange traded products (ETPs) ETPs are popular products but have varying trading volumes, which can affect liquidity.
Since the debut of the first ETF in 1993, these funds and other ETPs have grown significantly in size and popularity.﻿﻿ According to ETFGI, in 2020, worldwide, ETFs had over US$7 trillion in total assets under management (AUM).﻿﻿ ETPs also require a brokerage account to trade, so buying and selling ETP shares could result in a brokerage commission if it isn't one of the ETFs that the brokerage allows to be traded freely. ETPs trade on exchanges similar to stocks meaning their prices can fluctuate from day-to-day and intraday.

Exchange Traded Product (ETP)

An international exchange traded fund (ETF) is any ETF that invests in foreign-based securities.

Vanguard Total International Stock ETF (VXUS)

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Expand An international ETF may track global markets or track a country-specific benchmark index.
ETFs that invest in less developed country stocks or bonds are known as emerging markets or frontier markets ETFs. ETFs that invest in a single foreign country may carry higher risks than international ETFs that spread their investments among many countries. The Vanguard Total International Stock ETF (NASDAQ: VXUS) was launched in 2011 and invests in global stocks, excluding U.S. stocks. The Vanguard Total International Stock ETF invests at least 95% of all fund assets in an attempt to mimic the performance of the FTSE Global All Cap ex U.S. Index.

International ETF

An inverse ETF is an exchange-traded fund that uses various derivatives to profit from a decline in the value of an underlying benchmark.

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What Is an Inverse ETF? Higher fees tend to correspond with inverse ETFs versus traditional ETFs.
Many inverse ETFs utilize daily futures contracts to produce their returns. Inverse ETFs allow investors to make money when the market or the underlying index declines, but without having to sell anything short. If the S&P rises, investors would have to sell their inverse ETFs since they'll be experiencing losses offsetting any gains in their original S&P investment. For example, investors who own an ETF that matches the S&P 500 can hedge declines in the S&P by owning an inverse ETF for the S&P.

Inverse ETF

A leveraged exchange-traded fund is a fund that uses financial derivatives and debt to amplify the returns of an underlying index.

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What Is a Leveraged ETF?
Leveraged ETFs Explained
The Leverage in Leveraged ETFs
The Costs of Leverage
Leveraged ETFs as Short-term Investments
Real World Example of a Leveraged ETF Leveraged ETFs have higher fees than non-leveraged ETFs because premiums need to be paid to buy the options contracts as well as the cost of borrowing—or margining. While a traditional ETF typically tracks the securities in its underlying index on a one-to-one basis, a leveraged ETF may aim for a 2:1 or 3:1 ratio. A leveraged exchange-traded fund (ETF) is a marketable security that uses financial derivatives and debt to amplify the returns of an underlying index.

Leveraged ETF

A sector exchange-traded fund (ETF) invests in the stocks and securities of a specific sector, typically identified in the fund title.

The Global Industry Classification Standard (GICS®)

A sector exchange-traded fund (ETF) is a pooled investment vehicle that invests specifically in the stocks and securities of a particular industry or sector, typically identified in the fund's title. A sector exchange-traded fund (ETF) is a pooled investment vehicle that invests specifically in the stocks and securities of a particular industry or sector, typically identified in the fund's title. A sector ETF tracks a basket of representative stocks specific to an industry sector rather than the broad market. Most sector ETFs focus on U.S.-based stocks, but some invest globally to capture the worldwide performance of the sector. An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.

Sector ETF

A smart Beta ETF is a type of exchange-traded fund that uses a rules-based system for selecting investments to be included in the fund.

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What Is a Smart Beta ETF? Understanding Smart Beta ETFs
Types of Smart Beta ETFs
Passive and Active Management
Real-World Example
A smart Beta ETF is a type of exchange-traded fund (ETF) that uses a rules-based system for selecting investments to be included in the fund portfolio. Although there are many types of Smart Beta ETF strategies, a few of the most common include:
Equally weighted: Instead of weighting the fund based on stock price and market capitalization, this strategy equally weights the factors and each holding.
Fundamentally weighted: Companies are selected and weighted by such factors as total earnings, profits, revenue, or financially driven fundamentals and metrics.
Factor-based: Stocks are weighted based on specific factors such as balance sheet components, underpriced valuations, or smaller companies that are growing. Smart Beta ETFs use a rules-based, systematic approach to choosing stocks from a particular index. Trading volume can be low leading to difficulty buying and selling the funds.
Smart Beta ETFs typically have higher fees than passively index-based funds.

Smart Beta ETF

A stock exchange-traded fund is a security that tracks a particular set of equities or index but trades like a stock on an exchange.

The Implications of Passive Investing for Securities Markets

Trading the Powerful Stochastic Momentum Index

Number of exchange traded funds (ETFs) in the United States from 2003 to 2020

U.S. ETF market tops $5 trillion in assets as investors stampede into stocks on vaccine hopes

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What Is a Stock ETF? This instant diversification limits some of the unsystematic risk associated with company stocks and comes in a simple, low-cost, and tax-efficient tool that can be accessed through most online brokerages.
The number of ETFs that are trading in the United States, as of 2020, giving investors a huge number of potential funds to choose from.
Stock ETFs offer investors a wealth of benefits so it makes sense that fund inflows have increased. Investors who purchase shares of stock exchange ETF can gain exposure to a basket of equities and limited company-specific risk associated with single stocks, providing them with a cost-effective way to diversify their portfolios. For instance, these ETFs can track stocks in the energy sector or an entire index of equities like the S&P 500. Since they give investors access to a broad range of equities or indexes makes these (and others), stock ETFs are generally considered very diversified assets.

ETF Essentials

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