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Topic
Etf
9 guides in Finabase Learn
- ETFs vs. mutual funds: costs, taxes, trading and which fits A side-by-side guide to ETFs and mutual funds: how each is priced and traded, what each costs, why ETFs are usually more tax-efficient, and the new ETF share classes.
- Expense ratios and fund costs: what you pay and how it compounds How a fund’s expense ratio is charged, what a 1% fee costs over 40 years, and the other costs to check: loads, 12b-1 fees, trading costs, spreads and advisory fees.
- Growth vs value investing: styles, P/E and the long record How growth and value stocks differ, how style indexes sort them, what P/E and price-to-book tell you, and how VUG and VTV compared year by year since 2004.
- How ETFs work: creation, redemption, NAV and the arbitrage band Inside the ETF machine: authorized participants, creation units, baskets, NAV versus iNAV, the cost band that limits premiums, in-kind tax efficiency and SEC Rule 6c-11.
- Inverse ETF An ETF designed to return the opposite of an index's daily move, using derivatives; it decays when held over volatile periods.
- Leveraged ETF An ETF that aims for a multiple, such as 2x or 3x, of an index's daily return; compounding makes long-run results diverge.
- Nasdaq-100 An index of about 100 of the largest non-financial companies listed on the Nasdaq, weighted by modified market cap.
- Net asset value (NAV) A fund's assets minus its liabilities, divided by its shares outstanding: the per-share value of what the fund holds.
- What is an ETF? How exchange-traded funds work How an exchange-traded fund is built, how authorized participants create and redeem shares, why price tracks NAV, and the main ETF types to know.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.