What is an ETF?

What is an ETF, You Ask?

An ETF (Exchange Traded Fund) is a diversified collection of assets (like a mutual fund) that trades on an exchange (like a stock). ETF's can be low cost and a tax efficient way to invest.

Comparing ETF's and Mutual Funds

Many investors are familiar with mutual funds. How are ETF's similar and different?

How We Use ETF's

Build a Strong Core Portfolio

ETF's could offer diversification, low-cost access to various stocks and bonds and help build a core portfolio.

Generate Income

ETF's can help generate income through bonds, dividend-paying stocks and preferred stock ETF's.

Asset Allocation

A diversified allocation to various asset classes can help potentially provide a consistent return and help us measure risk to help us allign your goals and risk tolerance with your portfolio.

*The benefits listed above may not be all the benefits associated with owning ETF's. ETF's have risk like other investments. Investors should consider the risk of owning index based ETF's. Owning ETF's does include the potential for loss of some or all of your principal value. This is not an endorsement of Blackrock funds or ETF's or a solicitation of ETF's or any security.

Information provided by BlackRock