ETF's and Index Funds
An index fund is a type of mutual fund constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500). The intent of an index mutual fund is to provide specific market exposure, low operating expenses, and low portfolio turnover.
An ETF is a security that tracks an index, a commodity, or a basket of assets. It is similar to an index fund but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. An ETF provides the diversification of an index fund as well as the ability to sell short, buy on margin, and purchase as little as one share.
Additional Investment Types
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