Cryptocurrency Q&A
How do exchange traded funds make money?
How do exchange traded funds make money?
Dario
Sat Sep 28 2024
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7 answers
1932
Could you elaborate on the mechanisms behind how exchange traded funds generate revenue? Are there specific fees or commissions involved in their operations? Additionally, how do these funds manage to profit for their investors, and what factors contribute to their overall performance? I'm particularly interested in understanding the intricate financial dynamics at play within ETFs.
7 answers
GeishaWhisper
Mon Sep 30 2024
By owning shares of ETFs that hold dividend-paying stocks, investors can receive these dividends as a passive income stream.
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Sara
Mon Sep 30 2024
Exchange-Traded Funds (ETFs) generate income primarily through their underlying holdings, offering investors diversified exposure to various asset classes.
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BlockchainBaroness
Mon Sep 30 2024
A significant source of ETF income stems from dividends, which represent a portion of a company's earnings distributed to shareholders.
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WhisperWind
Mon Sep 30 2024
Dividends can be paid in cash or shares, and their amount is typically determined on a per-share basis.
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Martina
Mon Sep 30 2024
Companies distribute dividends to attract investors, as they signify a company's profitability and financial stability.
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