ETF Indexes

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 Index/Funds are traded as stocks. Thus, they fluctuate throughout the day. These funds provide investors with a wide range of 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 & Annuities has designed investment profiles that include ETFs, innovative instruments that manage market fluctuations efficiently and enable investors to enjoy returns from the world’s top capital markets.

ETF Indexes vs. Mutual Funds

ETF Indexes Mutual Funds
Minimal management fees. Higher management costs.
May be sold/bought at any time of the day. May only be bought at end of day and after the markets close.
Are not exposed to personal transaction styles. Fund may be impacted by its manager’s personal agenda or errors.
Investors always know which funds they have. Conventional funds only provide quarterly asset/investment composition reports.