Did you know that instead of buying individual stocks, it is possible to buy into a fund that has a basket of stocks?
When these funds track stocks in a particular sector or index, they are known as Exchange Traded Funds or ETFs. EFTs can be traded, just like ordinary stocks. ETFs can hold many types of investments, including stocks, commodities, bonds or a mixture of these.
ETFs have become very popular over the last few years providing easy access to the markets for many investors.
There are ongoing concerns about how ETFs distort the equity market when they buy or sell in large quantities, regardless of value or price.
Unfortunately, some of these so called Zombie ETFs are like the ‘walking dead’. They exist but there is not much life in the way of trading or growth. This causes the ETFs to become illiquid.
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