Home' Trinidad and Tobago Guardian : August 23rd 2015 Contents SBG10 STOCKS
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt AUGUST 23 • 2015
you ve heard of
them. But you may
not know exactly
what they are or
how they could work for you.
The truth is ETFs are an easy
and low-cost way to invest across
many stock and bond markets. But
even as they ve gained broad
investor acceptance and lots of
media attention, many people still
have questions about them, such
as: why should I use ETFs? and
how do I buy them?
Here, we cut through the noise
and offer some key facts about
Once you understand the ben-
efits of ETFs, you ll see how they
could be an exciting and smart
way to help meet your financial
goals, no matter your age, invest-
ment experience, or how much
money you re looking to invest.
The simple facts
Let s dissect what the name
"ETF" actually means. ETFs are
investment funds that trade like a
stock. Made up of a mix of stocks
and/or bonds, most are designed
to track a major index, like the S&P
500 or the Russell 2000.
Index ETFs aim to match the
returns of their market index, often
at a lower cost than most mutual
funds. Over time, you may do bet-
ter than if you were invested in a
similar mutual fund. In fact, for
some markets, ETFs may outper-
form active mutual funds.
Put simply, ETFs can help
• Save money: ETF managers
help keep fees low by managing a
fund to track its benchmark index.
And the taxable capital gains dis-
tributions of an ETF can be lower
than the average mutual fund. Over
the long term, these savings can
really add up. Note that you may
need to pay a trading commission
to buy or sell an ETF (just like a
stock), although some brokerages
let you trade many ETFs for free.
• Diversify your portfolio: There
are many ETFs to fit your personal
investment goals: whether it s
building a diversified core across
broad markets, investing in short-
or medium-term opportunities, or
targeting a specific purpose such
as cushioning against jumpy mar-
kets. You can quickly achieve broad
diversification with a single ETF
that contains both stocks and
bonds. Or choose from specific
asset classes, sectors, geographic
regions or countries.
• Quickly capture market oppor-
tunities: ETFs offer the same trad-
ing flexibility as stocks, meaning
you know the price throughout the
day and can easily buy and sell
them during market hours using
limit, market or stop-loss orders.
• Earn income: Many ETFs pay
dividends, and some focus specif-
ically on high-dividend-paying
companies, which can be impor-
tant if you re looking for potential
regular income. ETFs are also an
easy way to access bond markets.
• Manage risk: There s a growing
array of ETFs that can help you
hedge currency risk on foreign
investments, reduce market volatil-
ity, or target specific "factors" such
as growth-oriented companies.
• Stay invested: Rather than
parking your money in low-interest
cash accounts, you can invest in
an ETF and still have the potential
to earn market returns while you
save for short-term goals or decide
on specific stocks or bonds to buy.
Of course investing in ETFs comes
with more risk and volatility than
cash accounts. But you may also
have better growth potential.
The bottom line
ETFs are not new. They ve been
around for over 20 years, and more
investors of all types are turning
to them. Some US$3 trillion is
invested globally through ETFs,
and that number continues to
grow. (Source: BlackRock, as of
What s exciting about ETFs is
they answer very simple questions
many people have about investing:
How can I earn more, keep more,
and ensure I am investing smartly
across the world s markets?
Whether you work closely with
a financial planner or manage your
investments yourself, ETFs can
help you build a diversified port-
folio in a cost-efficient way. You
can use ETFs for specific invest-
ment objectives, such as income
generation, or to act on your mar-
ket views without having to take
on the challenge of picking indi-
vidual stocks or bonds. Whatever
your goals, you can almost certainly
find ETFs that work for you.
Investing involves risk, including
possible loss of principal. Trans-
actions in shares of ETFs will result
in brokerage commissions and will
Why every investor
should consider an
Republic of Trinidad and Tobago
THE BANKRUPTCY AND INSOLVENCY ACT, 2007
(SECTION 15(C), REGULATION 9(2)
Notice Of Appointment Of Receiver
In the Matter of the Receivership of Mc Leod Helmet Crested
Notice is hereby given that on the 28th day of July, 2015, I
Varune Mungal of Business Recovery and Advisory Services
Limited became the Receiver, replacing Brian Hackett
(Outgoing Receiver), in respect of the property of Me Leod
Helmet Crested Hummingbird Limited, an insolvent company. I
became a receiver by virtue of being appointed by RBTT Bank
Limited pursuant to Deed of Debenture dated the 8th February,
2006 registered as DE200600512157DO01.
Dated at Sunday 23rd day of August, 2015.
Me Leod Helmet Crested Hummingbird Limited (in
c/o 86, 7th Street Barataria
Trinidad & Tobago
Telephone (681-9235 or 326-7328)
generate tax consequences.
All regulated investment companies
are obliged to distribute portfolio gains
to shareholders. Certain traditional
mutual funds can also be tax efficient.
Diversification and asset allocation
may not protect against market risk or
loss of principal. There is no guarantee
that any ETF will pay dividends.
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