Index ETF

ETFs (Exchange Traded Funds) are investment products consisting of composite indexes such as the Standard & Poor’s 400, 500 or 600, among other (medium, high and low capitalization, respectively).
ETF Indexes
ETF Index/Funds are traded as a stock. Thus, they fluctuate throughout the day. These funds provide investors with a wide range of investment options in industries, geographies and strategies. In 2007, ETFs were introduced to be used in retirement accounts.
ETFs are considered passive investment mechanisms that aim to achieve several goals: wide resource diversification, administrative and transactional cost efficiency, and emulation of relevant markets in terms of performance and volatility.
These funds are designed to provide average profitability results in a specific industry or market.
StateTrust Life and Annuities has designed investment profiles, which include ETFs, that are innovative instruments that manage market fluctuations efficiently and enable investors to enjoy the benefits of the world’s top capital markets.
ETF Indexes vs. Mutual Funds
ETF Indexes Mutual Funds
Minimal administrative fees. Higher administrative costs.
May be bought/sold at anytime of the day. May only be bought at the end of the day, once the markets have closed.
Are not exposed to personal transaction styles. Exposed to fund manager’s personal agenda or errors.
Investors always know which funds they have. Conventional funds only provide quarterly asset/investment composition reports.