Andrea Alms Video:  Money In Motion 47 -  Exchange Traded Fund (ETF) Market

TRANSCRIPT:

Hello, my name is Andrea Alms and I am technology investor and financial manager and this is your money in motion. As we expand on our last episode, the theme of A.I. trading. Let's check out ETFs. What are ETFs? ETFs are exchange traded funds. They're a type of pooled investment security that holds multiple underlying assets rather than only one ETF. It's a very versatile income in many shapes and sizes.

Index ETF track and indices like S&P 500 actively managed ETFs are actively managed with the goal of outperforming the index industry. ETFs offer diversified exposure to industries such as pharma, energy and many more inverse ETFs are more are made to profit from decline in the underlying index. Commodity ETFs track the prices of commodities such as gold and oil.

Foreign market ETFs track non-U.S. market indices like Japan's Nikkei or the British Footsie. 100 historic data since 22005 to 2020. The global ETF market is about 7 trillion in 2021, with a compound average growth rate of 21% in the U.S., ETF assets under management has grown to 5.9 trillion by 2021 at a 15% compound average growth rate. This is a forecast from 2019 all the way through to 2028.

In the next episode, let's take a deep dive into this multitrillion dollar market. Thank you. This is your money, your money, in motion.