An exchange-traded fund (ETF) is a diversified collection of securities. ETFs seek to track an index, commodity, bonds or a basket of assets, and the prices change throughout the day as they're bought and sold on an exchange like a stock.
At Fieldia, we believe you should focus on the traditional, more broadly diversified and passively managed ETFs because they are designed to provide you with exposure to multiple securities and sectors. And their performance isn’t overly dependent on how well a certain type of company performs. Because there are so many ETFs available, we can help you narrow down your choices using the following criteria:
Core Broad Market; Strengthen your core equities portfolio. Core Broad Market ETFs are designed to give you broad exposure to U.S., international, small-cap and emerging market asset classes. You'll have the option to investing them individually or group them together to help create a diversified investment strategy.
DIVIDEND INCOME AND GROWTH
Allocate to dividend-focused strategies. Dividend Growth and Income ETFs offer broad exposure to U.S., international, small-cap and emerging market asset classes, but with a dual focus on capturing potential dividend income and capital appreciation.
Deploy strategies for volatile markets. Volatility Reduction ETFs are designed to provide diversified exposure to large- and mid-cap U.S. stocks, but in ways that aim to minimize volatility while allowing investors to continue participating in any potential market gains.
Help prepare for bear markets. Bear Market ETFs are designed to reduce exposure to the equity markets during periods of significant market declines. It is a systematic, disciplined approach with a built-in mechanism to shift to cash equivalents depending on market conditions. Funds are reinvested in stocks when market prices have further declined or rebounded.
Focus on specific investment characteristics. Multi-factor ETFs are designed to provide higher exposure to a combination of value and momentum factors to potentially enhance long-term returns. They also seek to maintain moderate turnover and lower realized volatility than traditional capitalization weighted indexes.
Capture income with active ETFs. Active Fixed Income ETFs seek to provide current income without undue risk by investing primarily in investment-grade corporate debt, U.S. government securities and other debt securities.