An Introduction to Exchange Traded Funds

Canandaigua, NY-based wealth manager Jason Mosher is a Certified Financial Planner professional and the co-founder of Sheppard Mosher. Committed to helping clients invest to meet their financial goals, Jason Mosher of Canandaigua, NY, has special expertise in index funds and exchange traded funds (ETFs).

ETFs are investment funds that deploy cash into pools of assets like stocks, bonds, and commodities. The funds are assembled and issued by investment companies and typically follow a specific investing objective. For example, stock ETFs invest only in stocks, bond ETFs in bonds, and commodity ETFs in commodities. There are also sector ETFs like health and technology, foreign market ETFs that invest in stocks outside the United States, and ETFs that follow an investment methodology such as value or growth.

Investors like ETFs for a number of reasons. The first is liquidity. The funds are traded on stock exchanges just like ordinary shares, so investors can purchase and sell them in the public markets. Other reasons are low fees, diversification, and tax efficiency.

The first ETF was listed in 1993. Today, there are hundreds of ETFs issued by companies such as Blackrock, Barclays Capital, Citigroup, and Vanguard. They hold more than $3 trillion in assets.

Securities are offered through Kalos Capital, Inc. and Investment Advisory Services offered through Kalos Management, Inc., both at 11525 Park Woods Circle, Alpharetta GA, 30005, (678) 356-1100. Sheppard Mosher is not an affiliate or subsidiary of Kalos Capital, Inc. or Kalos Management, Inc.