Exchange Traded Funds

Also known as an ETF, an exchange-traded fund is a security that tracks a commodity, bonds, basket of assets, or index and is traded like a stock on the stock exchange. One advantage is investors gain the diversification of an index fund. ETFs can track a wide range of stocks that are trying to mimic the returns of a country or group of countries, similar to mutual funds. With high daily liquidity, more flexibility, and lower fees than mutual fund shares, ETFs experience daily price changes as they are bought and sold.

Exchange traded funds are passive investment funds. Alpen Partners utilizes ETFs in mature markets and sectors where it’s challenging to find fund managers consistently beating their benchmark.