New ETFs on SuperForex
SuperForex is pleased to announce that it has updated the ETFs available for trading from September 15 onwards.
SuperForex has added more than 20 new assets in total. These include but are not limited to:
- Proshares UltraShort Silver – ZSL.US
- ProShares Ultra QQQ – QLD.US
- Vanquard Emerging Markets Stock Index Fund – VWO.US
- Cannabis ETF – THCX.US
- SPDR Oil & Gas Equipment & Services – XES.US
- Proshares Ultra Financials – UYG.US
- ProShares Short VIX Short-term Futures – SVXY.US
- SPDR Metals & Mining – XME.US
You can trade ETFs via any STP account.
If you do not already have one, now might be the perfect time to open it.
What are ETFs and how do they work?
An ETF (Exchange-Traded Fund) is a unit of a publicly-traded index fund.
Index funds are open-ended, index-linked mutual funds.
In other words, they faithfully replicate the performance of a stock or bond index, a real estate market index, sectoral indices or baskets of shares/bonds.
The distinctive feature of index funds is what is called passive management.
That is, the fund managers don’t buy what they want. But they hold in the fund’s portfolio the same stocks that make up the benchmark index and in the same percentage weight.
When it is an Exchange Traded Fund, the index fund purchases financial stocks.
But there are also index funds that buy commodities and their derivatives. In this case, the term ETC is used.
With both ETFs and ETCs, for example, you can invest in gold.
In the first case, by purchasing securities.
In the second, even by purchasing physical gold. The purpose of an ETF is therefore to replicate the performance of a given index.
One on the FtseMib, for example, will replicate the performance of the index itself.
And the value of the investment will always depend on the performance of the index.
Why invest in ETFs?
ETFs have gained in popularity and attention in particular due to the difficulties actively managed funds encounter in beating the benchmark index.
And that is to record higher performances than passive management and, in fact, Exchange Traded Funds.
ETFs can be bought and sold on the stock exchange like any other publicly traded security.
There are now many, so much so that investors can be highly flexible. As with other listed stocks, you can set stop losses, buy on margin or see short, and use the various options typical of trading.
Investing in ETFs also allows two very important things.
The first is to diversify your investment portfolio. By purchasing an Exchange Traded Fund, you are buying a basket of securities, and not a single security on which all the investment risk would be concentrated.
And they allow you to reduce management costs.
The way they are structured, in fact, the managers are able to optimize the sales operations, thus reducing management costs.
Exchange-Traded Funds can also be a long-term investment.
According to a lot of statistical evidence, in fact, in the long run, financial markets always grow.
And if this may not always be valid for a market like the Italian one, it is certainly more likely for the US markets and for global equity indices.
An added benefit of passive management is knowing exactly what your money will be invested in.
As we have seen above, in fact, the managers are bound by the composition of the index that the ETF claims to track.