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You buy stock. ETFs are not a service or an IOU, they are stocks — traded like stocks, stored like stocks. Shares are generally very convenient, because they can be bought and sold at any time if their value has increased.

No, guarantees are a direct path to income loss. Warranty is an expensive service, for some instruments you have to pay more than 12%

On the contrary, it is completely normal. Expected return

No, probably, in such conditions, the deposit will be the best choice. However, the profitability of deposits is low.

Yes, for example a fund

The fund invests in the most reliable instrument — Treasury Bills, which are first sold at a discount (discount) and then redeemed at full value. Which promissory notes to buy is described in the Financial Index.

Yes, it can be the Solactive, S&P, Barclays and so on. What does «should» mean? It’s very simple: the fund includes assets — stocks, bonds — and it is the managers’ job to make sure that their value rises or falls in exact accordance with the underlying index.

For example, the Solactive USA index of American stocks rose 1% — and the cost

The most reliable way is to duplicate the index structure exactly. The Solactive USA index includes more than 500 components — stocks of companies, which account for 85% of the capitalization of the American market. For a private investor, buying shares of hundreds of companies is a colossal work and just as great a cost. Shares of the same hundreds of largest American companies can be purchased by purchasing the US Stock ETF (FXUS). It closely follows the Solactive USA index and contains the same ingredients. It turns out,

No. The indices we are talking about are the so-called «capitalization weighted»: the larger the company, the more expensive its shares are. This means that if the price of one company included in the index rises and the other falls, this will automatically be reflected in both the index and the fund.

I understand your distrust, but judge for yourself: ETF is just a collection of stocks that flexibly adapts to changing conditions. There is nothing to burst with: there are no loans, schemes, full transparency is ensured — you always know what is inside the fund. Markets up — ETF stock prices are up. Markets Down — ETF stock prices are down. Shares are characterized by high liquidity (they can always be easily sold and bought), they are traded on the stock exchange. I don’t like the way things are — you can always sell through a broker on the stock exchange. But it’s better not: selling when it has fallen is one of the main mistakes of an investor.

Yes, it happens. In the US, over the past five years, 200-300 new ETFs have been opened annually and 100-155 have closed. The reasons are different: from the lack of investor interest in the fund to the physical inability to maintain anchor to the index (for example, due to the abolition of the index). But each time the liquidation takes place according to a clear procedure. Owners are notified in advance. They have the option to sell their shares on the market or wait for a redemption procedure to return them the market value of their shares.

In any case, trading in the shares will be maintained until the fund is redeemed and disbanded. This will be taken care of by a market maker — a large financial company, which, under an agreement with a fund, is obliged to maintain the liquidity of securities: buy and sell ETF shares in order to maintain their fair value. The fund’s assets will not go anywhere, the depository where they are stored will take care of this. In the case of FinEx, this is Bank of New York Mellon.

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