Martina
Fri May 17 2024
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5 answers
1103
What is the difference between ETF and futures?
Excuse me, I'm a bit confused about the difference between ETFs and futures. Could you possibly explain it to me in a simple manner? I've heard that both of them are investment vehicles, but I'm not quite sure how they differ from each other. With ETFs, I know they're exchange-traded funds that allow investors to trade like stocks. But what exactly are futures? Are they contracts to buy or sell assets at a specific price in the future? Also, how do the risks and rewards associated with ETFs and futures compare? Are there any specific advantages or disadvantages of investing in one over the other? Lastly, could you provide an example or scenario where investing in an ETF might be more suitable than futures, or vice versa? It would really help me understand the nuances between these two investment tools. Thank you so much for your time and patience. I really appreciate your assistance in clarifying this matter for me.
Pietro
Fri May 17 2024
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7 answers
1461
Why buy futures instead of ETF?
I've been hearing a lot about investing in futures and ETFs, but I'm still not quite sure which one is better for my portfolio. Could you explain why someone might choose to buy futures instead of ETFs? Is it about the potential for higher returns? Or is it the flexibility in trading that futures offer? Maybe it's the hedging capabilities that futures provide? I'm really curious to know what makes futures a viable alternative to ETFs in the investment world.
