ETFs 101 The 14 Types of ETFs in the Stock Market

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So you just invested into apple, amazon and even google but unfortunately, the market is crashing and does stocks are coming down also. It’s been 10 days and you’ve lost 30% of your portfolio. What do you do? 1. Sell 2. Hold

Btw: Theirs an ETF that actually shorts the S&P 500 so when the market is crashing your actually making money. Stick around to find out which on that it

Why are ETF important? ( Don’t complicate it)
ETFs are funds made up for 10 to sometimes 1000s of different stocks or bonds, so this gives you diversification.

Hot Tip: That doesn’t mean only do ETFs, it just means add them to your portfolio to create balance.

ETFs 101 The 14 Types of ETFs in the Stock Market

1. United States Market Index ETF
- Emulating, for example, the s&p 500
- the goal is to mirror it not outperform it
Example: VOO by vanguard its an ETF that tracks the S&P 500 and doesn’t try to out perform it out
Hot Tip: This what I do with some of my ETF, I’m not interested in outperforming because history has shown that doesn’t work

2. Bonds ETF
- made out of bonds
- more stability
- You can trade and no need to hold until maturity
Example A: Some track Government bonds like the (SHY) 1.7% return this year
Example B: Some track Corporate bonds like “LQD” 13.5% return this year
Hot Tip: having both Corporate and Government bond ETF is a great mix, and if you want International, you can also do that

3. Commodity Based ETF
- Communities are raw materials
- like gold, energy, water, metal and so on
- which usually stay very still
Example: would be an ETF made up of does raw materials like gold and so on. PDBC

4. International ETFs
- beyond the us
- more diversifications
- bonds and also stocks
- little more risk
Example a: Bonds BNDX they track international bonds
Example b: VXUS tracking stocks

5. Foreign Currency
- they track foreign currencies
- some times multiple types of currencies

Example A: Example FXA they track the Australian dollar

6. Inverse ETFs
- Can short the market when the market goes down
- Not a lot of different types out there
- Lack of liquidity since they are not that popular
Example: SH which is an inverse Etf that tracks the s&P was worth around $210 and now since the market is doing good its only worth $27.05

7. Leverage ETFs
- very risky
- active trading
- its goal is to provide daily high returns not annual returns
- rebalance daily
- usually high expenses ratios

8. Actively Managed ETFs: These are funds that are actively being manage and worked on. Anything 2% or more in an error makes it an actively managed ETF
( The ETF is meant to mirror the returns of the S&P 500 returned the s&P returns 9%, and the fund returns 11 percent which is 2 more, or it could also be less. So its actively managed
Example 2: The S&P 500 Returned 7%, and the fund returned 8%, meaning the tracking error is 1%, so it's not considered actively managed.

9. Exchange-traded notes.
- Notes giving out by the banks
- Less liquid than ETFs
- Not subject to short term capital gain since they don’t contain securities. Dividends are not giving out but added on to the overall value
- Some are issued by banks and mature at the end
Hot Tip: Do a lot of research to consult a financial advisor before doing this.

10. Sector and Industry ETFs
- sector ETF mirror sectors like pharmaceutical, tech and so on
The example you want to invest in tech but want to diversify, this would be a great option.

11. Derivative ETFs
12. market style ets
13. dividend etfs
14. innovative ETFs

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Who Knew about Number 6?
***More On Stocks****

TommyBryson

I’ve listened to hundreds of videos Tommy. But no one has itemized as you have here. You put a lot of work into this my friend. It’s appreciated. I had the intent to stay away from inverse. But you have me thinking about them now.

JWD

This is really helping me. Thank you, Tommy! I've watched parts of the Big Short.

johncream

Love the advice on inverse ETFs while the might lose you money during growth phases, they are a great hedge against a bad day

bryant

Subscribed. Thanks for your work, it's great to have this kind of guidance. I'm not invested in a large number of ETFs. I do have a couple shares of Global X Lithium and Battery. So far so good, but you're right it doesn't fluctuate much.

mattsathrohan

Great video! ETF's are awesome because you don't have to worry too much about volatility yet they still offer solid returns. I have most of my money in a SP500 ETF. I like focusing my time and mental energy on increasing my income instead of speculating on stock prices. Keep up the great work!

wwiiznm

Tommy
Good job. This is quite informative. Thanks.

Shawk

I fux with you bro! Very simple and concise information. Every investment needs proper research and then the individual takes into account their finances, risk/reward personality type, their overall understanding of the space and their goals before making a decision and I have concluded your a G! With a positive net return! 🤘🏻😭

its_smac

You brought up the ETF that I plan to invest in next (VOO). I like to invest when the ETFs dip. Hopefully in two weeks when I invest it does. I was going to do leverage, but either last week or the week before I read that it's short-term. Not for me. After VOO I plan to do an International ETF.

srtriples