{"id":175839,"date":"2020-09-23T20:43:00","date_gmt":"2020-09-24T00:43:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/trading-lessons\/types-of-etfs-and-where-they-trade\/"},"modified":"2023-04-25T21:04:20","modified_gmt":"2023-04-26T01:04:20","slug":"types-of-etfs-and-where-they-trade","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.com\/campus\/trading-lessons\/types-of-etfs-and-where-they-trade\/","title":{"rendered":"Types of ETFs and where they trade"},"content":{"rendered":"<h4>This second lesson covers:<\/h4>\n<h4>Types of ETFs available<\/h4>\n<ul>\n<li>Sector<\/li>\n<li>Thematic<\/li>\n<li>Factor<\/li>\n<li>Leveraged<\/li>\n<\/ul>\n<p>Where and when ETFs are traded There are over 2,200 ETFs in the US ETF marketplace, as of mid-2019, with US$3.5 trillion of assets under management.<\/p>\n<h4>Some of the more popular ETFs<\/h4>\n<p>Sector ETFs Sector ETFs invest in stocks and securities of specific sectors, such as:<\/p>\n<ul>\n<li>financials<\/li>\n<li>consumer staples<\/li>\n<li>consumer discretionary<\/li>\n<li>real estate<\/li>\n<\/ul>\n<p>They give you targeted exposure into that specific sector so you can take a \u201csector bet\u201d.<\/p>\n<h4>Thematic ETFs<\/h4>\n<p>Thematic ETFs provide exposure to related themes or trends &#8211; what is hot in the market right now or what a lot of people are talking about, such as:<\/p>\n<p>technology trends, including<\/p>\n<ul>\n<li>robotics<\/li>\n<li>biotech<\/li>\n<li>cloud computing<\/li>\n<li>Artificial Intelligence<\/li>\n<\/ul>\n<p>Environmental Social and Corporate Governance (ESG)<\/p>\n<h4>Factor ETFs<\/h4>\n<p>WisdomTree was one of the pioneers of factor ETFs, which provide exposure to certain fundamental attributes such as dividends or earnings, or other factors that are related to higher returns which target those specific factors such as:<\/p>\n<ul>\n<li>value<\/li>\n<li>momentum<\/li>\n<li>volatility<\/li>\n<li>size<\/li>\n<\/ul>\n<p>A lot of factor ETFs fall into the bucket known as smart beta, which is also known as modern alpha at WisdomTree.<\/p>\n<h4>Leveraged ETFs<\/h4>\n<p>Leveraged ETFs use derivatives or take on debt to magnify exposure, both long and short, for a specific investment &#8211; exposure that the ETF is designed to track. The important thing to understand about leveraged ETFs is they are designed to be daily trading vehicles. They are reset at the end of the day and provide leveraged exposure for one single day.<\/p>\n<p>They are:<\/p>\n<ul>\n<li>not meant to be held for long-term exposure<\/li>\n<li>designed to be used on a single trading day<\/li>\n<\/ul>\n<h4>Where ETFs trade<\/h4>\n<p>ETFs are all listed on a stock exchange, but you must trade them through:<\/p>\n<ul>\n<li>a platform that is connected to a stock exchange<\/li>\n<li>an alternative trading platform such as Interactive Brokers, or other discount brokerages<\/li>\n<\/ul>\n<p>You need to be able to access a broker-dealer platform to be able to access ETFs that are listed on an exchange.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Main Goals: Find out about the different types of ETFs available; Discover more about sector, thematic, factor, and leveraged ETFs; and Learn where ETFs trade.<\/p>\n","protected":false},"author":694,"featured_media":221447,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"contributors-categories":[13638],"traders-academy":[13125,13128,13132],"class_list":{"0":"post-175839","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-wisdomtree-u-s","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives | Traders&#039; 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