ETFs(Exchange Traded Funds)

If you want to play cautious in the stock market but don't want to take the time to research individual stocks you can either buy ETFs or mutual funds.

ETF's normally allow you to track/follow an index e.g. Dow Jones or S&P 500, since you can't invest in the index directly. You can even buy ETF's that follow a particular sector in the industry e.g. the technology sector OR follow a bunch of countries together e.g. Emerging economies OR even follow a specific country e.g. Brazil. There are even high risk leveraged ETFs promising 2 or 3 times the regular index return.

As an example, search for the ticker symbol "SPY" (SPDR S&P 500 ETF) in google finance to view the ETF that follows/tracks the performance of the S&P 500 index.




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