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Common questions and answers concerning ETFs

I hear all kinds of questions about ETFs all of the time and I can understand why. ETFs can be confusing and it is important to know about them if you want to use them. So here are a few of the most commonly asked ETF questions and their answers.

Is an ETF guaranteed?
Each ETF is gone over very carefully by the Securities Exchange Commission. They do not allow for any kind of abuse of their system. The companies that do get the go ahead to create an ETF are always monitored very closely just to be on the safe side and they are large and reputable companies to begin with. Your money is safe in ETFs the Securities Exchange Commission has made sure of that for you.

What can be an ETF?
If a class of asset has a published index and it is liquid then it can become an ETF. There are actually a few different kinds of ETFs, there are real estate, bonds, stock and gold ETFs out there.

What if you are not an American citizen?
To open an ETF in the States all you need to be is able to open as brokerage account. If you can purchase stocks then you can purchase an ETF

Are there international ETFs?
Yes, there are plenty of international ETFs as well as many regional ETFs.

How to I buy an ETF?
This is simple, you will purchase an ETF just like you would buy any other kind of stock.