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ETFs Are Supposed to Make Complex Ideas Simple. Here's What You Need to Know About This One Before You Buy.


The entire concept behind exchange-traded funds (ETFs) is to make investing easier. With one investment you can buy large numbers of stocks and bonds, instantly creating a diversified portfolio. But Wall Street has taken ETFs well beyond their original conception, and the Invesco Building Construction ETF (NYSEMKT: PKB) is a good example of making simple things more complex.

The first exchange-traded fund ever created was designed to track the S 500 index. Given that the S is generally considered "the market," it was a great way for investors to very simply get exposure to equities. There was a mad rush on Wall Street to bring out more index-tracking ETFs once it became clear that the ETF concept would work.

Image source: Getty Images.

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Source Fool.com

Invesco Ltd. Aktie

14,90 €
-0,17 %
Ein geringer Kursrückgang bei Invesco Ltd. heute, um -0,17 %.
Invesco Ltd. sticht etwas positiv hervor mit 5 Buy- und 1 Sell-Einschätzungen.
Das Kursziel von 18 € für Invesco Ltd. signalisiert eine mögliche Steigerung von über 20% gegenüber 14.9 €.
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