Exchange-Traded Funds (ETFs) are baskets of assets that track the performance of an index, commodity, or group of similar assets and can be traded like stocks.
For example, GDX (Global Gold Miners Sector), the Gold ETF, tracks the movement of the Gold sector as a whole and includes the Goldcorp (GG), Barrick Gold (ABX), Newmont Mining (NEM) exchanges, and more.
ETFs are often compared to mutual funds, which often require a minimum investment of $2,500 or more. Online traders generally find Exchange-Traded Funds more appealing because they offer a more cost-efficient investment option as they do not have investment minimums, can be bought in shares, and do not have a net asset value (NAV).
Additionally, ETFs can be traded during regular trading hours, and can be purchased with limit orders and on margin.
Investors often favour ETFs over mutual funds for their flexibility, their exceptionally high liquidity rates, and their ability to be shorted and to bring in high returns quickly.
A number of ETFs are available for trading on the UFX platform with 50:1 leverage:
- QQQ – NASDAQ Index
- SPY – S&P 500 Index
- FEZ – Eurostocks50 Index
- GDX – Gold Mining Companies
- USO – Oil Companies
- UNG – Gas Companies
- XLF – Finance Sector
- XLE – Energy Sector
- XLK – Technology Sector
- XLV – Health Sector