What is an exchange traded fund?
To properly view this site, javascript must be enabled and Flash version 9 or higher must be installed.
Get the latest Flash player
Get the latest Flash player
-
In this video David John Marotta explains the importance of financial planning and budgeting.
-
In this video, Mr.
-
In this video, financial planning professional and member of the Financial Planning Association®, Mark Johannessen, CFP®, describes the four important steps to take when choosing a financial planner.
-
In this video, financial planning professional and member of the Financial Planning Association®, Mark Johannessen, CFP®, describes the four important steps to take when choosing a financial planner.
-
Looking for & Choosing a Financial Planner
In this video, financial planning professional and member of the Financial Planning Association®, Mark Johannessen, CFP®, describes the four important steps to take when choosing a financial planner.
-
In this video, financial planning professional and member of the Financial Planning Association®, Mark Johannessen, CFP®, describes the four important steps to take when choosing a financial planner.
-
Analyzing your Financial Status
In this video, financial planning professional and member of the Financial Planning Association®, Alexandra Armstrong, CFP®, describes the six important steps in the financial planning process.
-
Implementing the Financial Plan
In this video, financial planning professional and member of the Financial Planning Association®, Alexandra Armstrong, CFP®, describes the six important steps in the financial planning process.
-
In this video, financial planning professional and member of the Financial Planning Association®, Alexandra Armstrong, CFP®, describes the six important steps in the financial planning process.
-
Gathering Data for your Financial Plan
In this video, financial planning professional and member of the Financial Planning Association®, Alexandra Armstrong, CFP®, describes the six important steps in the financial planning process.
Stumbleupon
Reddit
Digg
Mixx
Delicious
Facebook
Twitter
David John Marotta
President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.
http://www.emarotta.com
434-244-0000
questions@emarotta.com
David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
What is an exchange traded fund?
This expert: 183,076 views
This series: 8,621 views
Transcripts
Host: What is an Exchange Traded Fund?
David Marotta: There is nothing new in investing in the last 50 years except Exchange Traded Funds and they are new. They are like mutual funds but they trade throughout the day like a stock. Normally, a mutual fund is only traded at 4 p.
m. after all of the, everything in those mutual fund is valued then they will buy and sell shares. If you invest a $100 during the day, they wait till 4 p.
m.
, figure out what the fund is worth and then you buy shares into it. An Exchange Traded Fund is traded throughout the day. So, it's a collection of stocks like a mutual fund, but the value goes up and down based upon what the stocks are going up and down and if you want to buy one, there are companies that will put together an Exchange Traded Fund unit and sell it to you. Based upon the net asset value of the underlying resources, they will sale it to you for a very small transaction cost and then, if you want to sell an Exchange Traded Fund, there are companies that will take that and break it apart and sell all the individual stuff. So, Exchange Traded Funds can be created and can be destroyed throughout the entire day and there are companies that will do that. That keeps an Exchange Traded Fund share always trading very close to the net asset value that the underlying assets are having. If the net asset value goes up above what it s trading at, there is someone who will buy them and break them apart from more than their worth and if there is one that goes below what it's trading at, there are companies that will put together one and deliver it for very much close to what it's worth. The other advantage of Exchange Traded Funds is a mutual fund will have capital gains that it will kickoff every year from it's own buying and selling because Exchange Traded Funds are put together and given to the investor. You don t have to pay capital gains on it until you decide to sell it. So, they are very good in taxable accounts because they have good tax management. You don t have to pay capital gains. The other thing is that when the underlying assets change in a mutual fund, they buy and sell and that triggers capital gains. When they change in an Exchange Traded Fund, they give them to some endowment who trades for something else that s very much like it and because it's a like kind exchange, it's not a taxable event. So, that s why they are called Exchange Traded Funds is because they don t kickoff capital gains until you decide to sell them and then they are just your capital gains. They are not a pooled investment s capital gains.
Other Videos
-
In this video, mortgage advisor, Jeff Thomas describes how to purchase your first home and the process you must go through to obtain a mortgage. This video is designed for first time homebuyers and also provides valuable information to indivduals who have purchased a home in the past. This video includes an overview of the four parts of a loan file, mortgage jargon, the loan process, house hunting, the types of mortgages available and the 7 steps on how to manage your mortgage correctly.
-
In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
-
In this video, mortgage advisor, Jeff Thomas describes how to purchase your first home and the process you must go through to obtain a mortgage. This video is designed for first time homebuyers and also provides valuable information to indivduals who have purchased a home in the past. This video includes an overview of the four parts of a loan file, mortgage jargon, the loan process, house hunting, the types of mortgages available and the 7 steps on how to manage your mortgage correctly.
-
In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
-
In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
-
This video discusses the steps a high school student should take to begin the process for identifying the right choices and applying to college. It will provide you with both facts and expert opinion on various aspects of the college selection and admission process. There are suggestions on how to plan and strategize for gaining admittance to college. In addition, it will highlight different aspects of the process and breaks each down to a specific segment like standardized tests, college essays, financial aid, etc. to name just a few. We will offer suggestions on how to get started, remain on schedule and finally how to make the best choice for college. This video will provide every student and parent with the necessary insight as to how to begin and best move forward with the college process.
Home | Terms and Conditions | Privacy Statement | FAQ | About Us | Contact Us | RSS | Link to Us | Filmmakers | Blog
© Copyright 2009 Knowlera Media LLC. All rights reserved.
View Comments (Add Comment)