What are Equities and ETFs?
Equities1 represent ownership stakes in corporations. Typical equities may include common stock, preferred stock, foreign equities and closed-end funds.
An ETF, or Exchange Traded Fund2, is a collection of assets (like an index fund3) of equities, commodities, and/or bonds that is bought and sold like a stock in real-time on a stock exchange. Most ETFs are not actively managed, but instead are designed to track an index. In general the expense ratios of ETFs are relatively low. Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.
Both equities and ETFs can offer potential growth from market price appreciation; however, they are subject to market volatility and thus, open to market price risk and potential loss of principal
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