ETFs Explained for Beginners

Many people start their investing journey with mutual funds, but mutual funds come with a host of problems. The solution? Exchange-traded funds (ETFs).

In this video, you'll learn the basics of investing in ETFs and why they are often superior to mutual funds.

0:00 Introduction
0:39 ETF Basics
1:25 Simple ETF Example
4:01 Real-World Example: S&P 500
4:55 What is the Fund Objective?
6:54 What is the Net Asset Value (NAV)?
8:27 Beware of These Types of Funds!
12:08 What Are Authorized Participants? Legal ETF Manipulation
17:06 Why You Should Avoid Mutual Funds
22:08 Popular ETFs in Each Asset Class
24:48 LIVE Investing Demonstration on tastyworks

== Recommended Resources/Videos ==

[DaleBEATBOX]

This is a great video and very clear for a noob to ETF's like me! Clear and concise explanation of all the basic details I needed to know. Thank you Chris!

[garrykim]

Great content Chris. Also, fantastic video quality. You put a ton of work into your videos and it shows. Thanks!

[Cdv]

This one video provides me HOURS of side googling and studying. This is awesome man, thanks.

[woodyz]

Hey dude, what programs do you use to track your portfolio? If you use your own spreadsheets, would you be open to sharing your set-up online for everyone to use as a demo?

[jonathanh]

There are 5 companies that have multiple share classes. The S&P 500 has stopped accepting companies with multiple share classes into their index.

[kamikatzee]

the authorized participant is the one making money from the difference between the actual ETFs Value (NaV/ nr of shares) and the market price. they have an agreement with the issuer of the ETF to do so.

[andylongboards]

ETFS’s like QQQM have a closing NAV that is a factor of the NDX composite value. Makes sense but is there a way I can find this factor? (Is there a term for it?)

[TILTAN_ACTIVE]

So correct me if im wrong, now is the time then when market is down to invest in leverage etf’s ?

[abidingdude]

Great video dude. Thanks for sharing.

[josephx]

Thanks for this lesson, it's been helpful indeed. How can I access ETFs if am based in Africa.?

[karkiification]

Thanks for the really good video. What is the difference between free option course after signing tastyworks vs youtube videos by you?

[TheKanjina.MooreFamily]

Thanks Chris for clarity on etf price movement. I was aways curious how it works prior to this video.

[naturalTV]

Great vid thanks! As a musician I recommend a de-esser, specifically the one by Waves. Your s sounds are popping too much. Cheers!

[daves.]

Thank you for your valuable content. I always look forward to your videos.👍

[futurelawyernyc]

I love all your videos <3 hope you make more along the way, thank you for all your quality videos!!!

[TheSarveshgupta]

After watching your vedio I bought Nifty bees, which indian benchmark ETF

[johannamakalima]

So basically ETFs are a share in the Monterey value? Therefore purchasing ETFs you are purchasing a share in the Monterey value of something?

[gokaydeniz]

Thanks for all the great information Chris! Do you have any book recommendations on options? Books that helped you during your learning journey? Thank you in advance!

[michaelrumie]

2:20 why was the camera slowly zooming in here it scared me

[melvindin]

I am in New Zealand. I wish to set up a small financial training trust for my grandchildren who are in many parts of the world. I have been investing in mutual funds and made just peanuts. ETFs are safer and more liquid than the rest. How can I start an account for them? Would it be good to run a trust ETFs as a collective or open it for them with some gift funds from me? I have 12 grandchildren and I want them to become smarter than you. by the age of 20.