Basics Investing Stock : As an investment instrument Fund ETF.

As an investment instrument : Fund ETF.
ETF or "Exchange Traded Fund" is a fund that invests in shares. And is listed on the Stock Exchange. If the source of the vocabulary.

English, each word is made up as follows.

Exchange: This means that the unit has been listed on the secondary market (secondary market) or the stock market (the stock exchange).

Traded: This means that it can be traded through a broker (Bl.) or brokers. Was listed as one of the state.

Liquidity (liquidity) of the fund's ETF shares is no different from normal. That can be traded throughout the day also investors can also get immediate trading in Real Time as well.

Fund: means that the ETF is a mutual fund (mutual fund) by type of ETF is an investment fund that focuses on results.

The benchmark index such as the stock price index. SET50 Index stock index, bond prices and so on.

The first ETF that invests in equity securities of Thai SET50 index as the underlying stock price. Fund managers will gather.
Investment from a group of investors to buy stocks in SET50, with the aim of investment returns close to the stock price index SET50.
Most of the investment portfolio is comprised of 50 stocks with good fundamentals. The market value (market capitalization) are in securities that are in high demand of investors. The turnover of trading by a high liquidity.

Index SET50 (SET50 Index) is one of the common stock share price index designed to reflect the price movement of shares 50 characters.


With liquidity. And high market capitalization. It is considered the most representative value of the shares in the market. It is calculated by the method.
Weighted Market Cap (Market Capitalization Weight) by the following formula.

1. For trading (trading price).
The purchase price (bid) and sell (offer) that appear on the board of which ETF trading price will be determined by demand and
The needs of investors in the ETF market.

2. The value per unit (net asset value: NAV).
The Fund's net asset value per unit. Calculated from the sales price of the shares as an element in the SET50 Index at the end of days, but for Equity.

ETF is a fund management company Equity ETF will be calculated and reported net asset value.
Approximately every minute throughout the trading period. The estimated net asset value is called the Indicative NAV (INAV).

Significant investment in the ETF market. Abroad has been very popular. Due to the liquidity of the securities.
Listed on the Stock Exchange. And the reference stock price index as an investment in stock is a component of the entire index. to help spread the risk in investing is to buy a unit acquired 50 TDEX 1 simultaneously.

1. Profit from the difference in price (capital gain).
If an investor can buy ETF units at low cost and can be sold at a price higher than purchased. The profit from the difference in price.

2. Dividends (dividend).
Investors will receive dividends from the holding of the ETF, which is derived from dividends of companies that are components of the SET50 Index.
The fund manager will provide dividends, after deducting fees and expenses of the Fund.

The risk of investing in the ETF.
ETF investors are at risk of negative factors that may have a negative impact on the level. For example. If you have news about the economic importance was not great.

The SET50 index may decline to affect the price of SET50 ETF investors hold may be reduced.
The investor may sell the ETF at a price lower than when first purchased.

In addition.
Investors also face the risk that Tracking Error Risk is the risk that the return of the ETF is not equal.
100% yield of the index.