fbpx
Unfiltered

ETF: What In The F*ck Is One?

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. This crazy baby holds assets such as stocks, commodities, or bonds and generally operates with a sweet-simple mechanism designed to keep it trading close to its real value a.k.a net asset value. Though sadly, deviations can occasionally occur, things are being improved by the likes of blockchain technology and the power of transparency and decentralization. This means that you can buy a replica for the price of the original when the original one cannot be bought.

Buying gold, by not really buying gold but, has the advantages of buying it.

So you probably want to invest your money in assets that are doing well, yes? For example gold is doing super well right one, assuming it is your choice of investment, and your capital that you may want to invest is $100, then you really can not buy and keep that amount of gold because not only will you have to keep it safe and well guarded but also you will have to find yourself a small piece that matches the value of $100, and instead of getting into all of this pre-Medici family fuss, you can now use an ETF and buy that product as an investment, without having to care about its safety, its divisibility and monitoring its value. The asset management company takes care of it! For you! How cool is that!

This concept has been around for quite long and it does not look like it will go anywhere as well. So, how about we explore a little more, and try and see what is the rave about?

Making Tax Your Friend

Tax-Friendly, not friendly to taxes, but more palatable as the capital gains tax won’t clog up your investment, perhaps, when you sell it or exchange it only then are you paying the tax. So, fair right? Friendly? Never thought that taxes could be your friends too, right? ETF’s make it happen.

The total worth of the ETF’s traded annually is more than the total U.S. GDP, and if that is not enough for you to settle on this good stuff then, according to the EY survey on ETF’s in 2017, the total value of ETF’s exchanged reached $4.4t by the end of September 2017.

The tracking error has been reducing and the asset management companies are trying to make it the safest and secure investment ever. The expense ration is way lesser than an actively managed funds.

The Biggest ETF Breakthrough?

ETF’s are now on blockchains and the age-old great idea is now being served right, fair and transparency is the underlying buzz factor here! So now ETF’s are verifiable and accessible through any person who has the internet, despite the growing number of asset management companies, the key with blockchain is decentralization, the companies in themselves cannot manipulate or topple the values of the ETF’s, the investors will be all-knowing and any discrepancy can be instantly found and shamed ruining the company’s value and esteem.

Some of the biggest ETF’s on the blockchain are BLOK, Koin, and others among them, that keep giving each other some serious competition on who’s better and more popular.

The industry is young, people hate it, love it, the click-bait and the smear content is ready to kill it before it stands and this poor child that is set to keep things neat, clean and beautiful is being brought down before it sees the light of the day, and yet, it survives each day! Cheers to the progressive, new age technology brainchildren of blockchain and modernity! Get it, get it? Yes, no?

 

Tags

Khunsha Javed

A Filmmaker, PR enthusiast & Editor of BlockPublisher-Unfiltered. I like things that make my brain tingle. Email: khunsha@blockpublisher.com or editor.unfiltered@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Close