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Exchange traded funds (ETF's)

Exchange Traded Funds (ETFs), shares of investment funds traded publicly on stock exchanges.

 

ETF structure reflects price tracking on stocks, bonds, indices or commodity (gold, oil and other commodity assets). Trading of ETFs is a similar as trading of traditional Stocks.

 

ETFs shares listed on the various world stocks exchanges, have the quality of open-end investment fund with a small performance fee. You can buy ETF shares without any additional performance fee.

 

On the market available a wide range of ETFs, it is only need to find a suitable ETF.

 

Advantages:   

 

  • ETF structure is transparent, all information offered on the ETF's website.
  • ETFs wide range available.
  • ETFs liquidity, You can quickly buy or sell.
  • Minimal trading size - 100$.
  • ETFs share trading as simple as stock trading, You can buy/sell at any trading session time.
  • ETF diversification - ETF manages wide range of financial instruments and indices, it will allow achieve greater diversification than making individual investments.
  • ETFs shares listed on the United States and Europe stocks exchanges http://www.nasdaq.com/etfs, commission fees for buy/sell is the same as traditional stocks.

 

The risks associated with trading ETFs:

 

  • Market risk - is the risk of reducing the ETFs cost as result of changes in market factors.
  • Liquidity risk - is the risk when traded volumes on the stock exchange may not be sufficient for ETF shares deal executing.

 

Taxation:

 

  • Tax rate on Capital gains (profits) is 20%. Customer itself calculate and provide tax payments. The Bank is not a tax agent.
  • ETFs dividends income tax pays in the country where the dividends are paid out.
 
Information
AS "Meridian Trade Bank" Head office
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Ph.: +371 67019393
WhatsApp: +371 27677569 (chat)
Skype: mtb_info (chat)
E-mail: info@mtbank.eu
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