Category: Stocks

Commodities ETFs invest in physical assets like gold, oil, or agriculture. They hedge against inflation and offer diversification. However, they are sensitive to commodity price fluctuations.

Leveraged ETFs aim to deliver multiples of daily index returns. They offer high reward potential but carry significant risk due to compounding and volatility decay.

Sector ETFs invest in specific industries, such as technology or healthcare. They allow investors to target growth sectors but come with concentrated risk exposure.

International ETFs provide exposure to global markets. They help diversify portfolios beyond domestic stocks. Currency fluctuations and geopolitical risks affect their performance.

Factor ETFs focus on characteristics like value, quality, or momentum. They aim to outperform traditional index funds by capturing specific market trends. These ETFs offer diversification with targeted exposure.

Low-cost index ETFs track market indices such as the S&P 500. They offer broad diversification, low fees, and long-term growth potential. These ETFs are ideal for passive investors.

Inverse ETFs aim to profit from declining markets by shorting underlying assets. They are used for hedging or speculative purposes. However, they carry risks due to daily rebalancing and compounding effects.

Smart Beta ETFs combine passive and active investing strategies. They track specific factors such as value, momentum, and volatility. These ETFs aim to enhance returns and reduce risk compared to traditional index funds.

Dividend ETFs focus on companies that pay regular dividends. These funds provide a consistent income stream, making them popular among income-seeking investors. They also offer diversification across dividend-paying stocks.

Growth ETFs focus on companies with high earnings potential. These ETFs often include technology and innovative firms. They offer significant growth opportunities but come with higher volatility compared to value-focused ETFs.