Complete finance n00b here.
As far as I understand, ETF basically goes up and down just like the index it attempts to track. Some etf are even less volatile comparing to the index.
But since the index will go up and down randomly, doesn't that mean the etf will just go up and down randomly as well? Say I am a relatively conservative investor, does that mean I should only buy etf if I feel the general market will be going up? Is there any incentive in holding a etf at all?
But reading a bunch articles online, it seems etf is almost like buying bonds that guaranteed to make a very small percentage of money slightly higher than interest rate? Why is it not just as volatile as the stock market?
Or is the stock market as a whole not volatile?
Submitted February 21, 2017 at 11:06PM by SiegeLion http://ift.tt/2l6jJxn
