An exchange-traded fund (ETF) is a type of investment that provides investors with a diversified investment. ETFs track a specific index, industry, or other assets. Like other investments, investors can invest in these funds in the market. Usually, ETFs include a variety of underlying investments, such as stocks, bonds, commodities, …

Leverage represents the use of borrowed capital to fund activities. For investors, it involves using loans or other borrowed funds to invest in securities. These borrowed funds come with some charges, usually in the form of interest payments. For investors, the returns they get from their investments must exceed these …

A loan is a transaction between two parties, a lender and a borrower. The lender is the party offering a resource in exchange for an incentive. This transaction may also include collateral, which provides the lender with higher security. Usually, loan transactions involve paying a monetary amount. However, investors also …

Futures contracts are agreements that allow investors to deal in specific commodity assets or securities. With these contracts, investors can fix their future prices for a particular time in the future. Futures contracts allow investors to hedge against various risks associated with price changes. With these contracts, investors undertake an …

Hedging is a technique that investors use to mitigate any specific risks that they face with investments. Usually, it includes investing in derivatives to counterbalance the adverse impacts of any risks. There are many types of hedge instruments that investors may use for that purpose. For example, investors can use …

Having a diversified portfolio of investment is crucial for any investor. Traditionally, investors have divided their portfolios into equity and debt investments. With the vast number of options available nowadays, however, the same does not apply. Investors have various options when it comes to building a diversified portfolio. One such …

Forex trading includes buying or selling currencies to profit from the differences in exchange rates. Due to the widespread availability of markets, forex trading has become a popular choice among many investors. There are several strategies that investors may use to profit in the forex market. One such strategy is …

What is a Sovereign Wealth Fund? A sovereign wealth fund represents a pool of funds owned by governments. These funds usually include any surplus reserves that countries accumulate over a period. The government may consist of both central and sub-national governments. Sovereign wealth funds include investments in foreign financial assets …

Investors need a diversified portfolio to mitigate any risks that come with their investments. During this process, they can use several techniques or approaches. Traditionally, most investors make decisions based on their objectives. However, investors can also build a portfolio based on their risk appetite. One approach they can use …

Building a portfolio can be a significantly challenging task for investors. Most investors only consider stock and bond investments when constructing their portfolios. This approach has historically been a safe option for investors. While it increased the rewards they received, it also provided them with a safety net for when …