A short position allows you to sell an ETF you don't actually own in order to profit from downward price movement. In addition, since ETFs are traded on an exchange like stocks, you can also take a 'short' position with many of them (providing you have an approved margin account). ETFs can be used to help diversify your portfolio, or, for the active trader, they can be used to profit from price movements. That means they have numerous holdings, sort of like a mini-portfolio.Įach ETF is usually focused on a specific sector, asset class, or category. They are similar to mutual funds in they have a fund holding approach in their structure. Account Types & Investment Products OverviewĮxchange traded funds (ETFs) are baskets of securities that trade intraday like individual stocks on an exchange, and are typically designed to track an underlying index.Contribution and Eligibility Calculator.Investment Management Services Overview.
