Basics
Learn the basics of ETFs, including their history, how they compare to mutual funds, what types are available and more.
How can ETFs be used?
ETFs can be used to implement a variety of short and long-term portfolio strategies.
Some of the uses for ETFs are strategic—for example, asset allocation—while others are tactical. Whether it makes sense to use ETFs in a particular strategy depends on a number of factors, including the dollar amount invested, holding period, trading costs, appetite for risk, and more.
Here are some of the most common ways investors put ETFs to work in their portfolios:
Strategic uses
- Asset allocation
- Sub-asset allocation
- Active and passive combinations
Tactical uses
- Portfolio completion
- Cash equitization
- Risk management
- Market rotation
- Currency exposure/diversification
ETF fundamentals
Indexing
Indexing, how ETFs are indexed, the differences between excess return and tracking error, and more.
Trading
Learn how ETFs trade, where they get liquidity, common order types, how premiums and discounts work and more.
Strategies
Learn about strategic and tactical uses for ETFs, including asset and sub-asset allocation, portfolio completion, cash equitization and more.