There is a security which is similar to the index funds, and it can be transacted as you do for the shares. It will enable the investors to buy many securities in one transaction, and this security offers convenience to the investors. There are no much differences between the mutual funds and this fund yet it has become popular within a short period. There are many benefits associated with this security primarily it can be purchased or sold during the day, it can be sold short, and it involves margins, so these benefits have attracted the investors easily. It's obvious that this newly introduced security will have disadvantages as well so what they are? There are two main problems which you should focus thoroughly.
Any investor who does active management finds this newly introduced investment method as an opposite one due to the largely fixed tracks. The second drawback is commission it will be just a cost at the beginning, but with the time it will turn out to be a huge drawback duecontinue reading