I received the following question from one of our viewers today:

ETF's are instruments that trade just like a stock but represent the value of a commodity (like gold or oil), or an index (such as the dow jones industrial average). Trader's use ETF's to speculate on things such as the price of oil or the level of the Dow, but also as indicator's of things like the performance in a particular sector (such as airlines) which an ETF represents.

Some of the more popular ETF's are the SPY which tracks the S&P 500, the QQQQ which tracks the NASDAQ, the USO which tracks the price of oil, and the GLD which tracks the price of gold.

Best Regards,
Dave



Best Regards, Dave