ETF funds – why is this a good asset?
Fund, in fact, unites shares of different companies. If you buy a fund shares, automatically invest in all the companies that are included in the “set”. Many funds are formed according to popular indices – for example, there is an S&P 500 index fund, funds investing in a certain industry or in the company of a particular country. If the fund is index, then the prices for its shares grow and fall in proportion to the index.
is not always, but often formed according to the index
, some funds are invested in other assets – not shares, And, for example, precious metals, currency, something else. But capital is still compiled the same: the management company of the Fund buys assets, and traders and investors buy stock shares.
gives the investor additional opportunities
to invest in large companies without large capital. For example: one action of the FXIT Foundation, which is formed according to the list of American IT companies, is estimated at 11,358.5 rubles. And the action included in the list of Google costs 204,725.5 rubles. You can invest in Google – And at the same time in the rest of the fund companies, – without such an amount in the hands. receive the result from fluctuations in prices for assets from the international market. For trading on international exchanges, the status of a qualified investor is often needed. This means that even through a broker, not every trader can buy shares of foreign companies. But you can get the result through the stock shares – the same as if you bought shares directly. invest in the company of different countries. This helps to reduce risks, but usually It is associated with great work. And it is easier to track the funds of the fund – while the fund takes all the difficulties.
ETF fund is much more transparent and more convenient than the PIF
PARE investment fund is also a form of collective investments. Investing in the PIF, you get part of the property of the fund – a share proportional to your contribution. A single portfolio of securities is purchased for all invested money. It seems that this is the same as ETF, but there are differences.
How to buy or sell promotions/share?
ETF: through a brokerage account or Iis, you need to apply to the broker on a trading day. You can buy or sell shares in any number of PIFs: only in the office of the fund or from the website of the management company. Not all funds are presented on the exchange
How to manage the fund?
ETF: The management company does not seek to beat the index and usually follows it. He puts the PIF in all papers immediately: the company actively manages assets, wanting to receive income above the index. It is only beneficial in the short term
How much is the commission commission?
ETF: up to 1% of the average asset value per year. Additionally, the services of a PIF broker are paid: up to 3-4% per year, there are additional commissions for the purchase/sale of shares
Who controls the fund?
ETF: reports to the Russian and foreign Central Banks of the PIF: only the Russian Central Bank
is reported to the price of shares/share?
ETF: It changes throughout the day, as well as the price of the assets of the PIF: it changes after a trading day once a day
can the fund change assets?
ETF: No PIF: the management company can change the declaration and invest in other assets