Click here to read the original article on ETFdb.com.
Related Posts:- No Related Posts
Putting Single Stock Volatility in Perspective
June 16, 2014 at 09:00 AM EDT
Over the years, more and more investors have come to embrace the exchange-traded fund structure. For the most part, many have chosen ETFs over mutual funds because of the significantly lower expense, as well as the ability to trade these securities throughout the day [see Understanding the Mutual Fund vs. ETF Cost Difference]. Though cost and ease-of-use are two important factors, investors do not always realize the biggest benefit of ETFs – diversification. Exchange-traded funds allow investors to tap into nearly every corner of the investable universe, while at the same time mitigating the risks associated with holding a single stock. To visualize this risk, let’s put single stock volatility into perspective: Company 52 Week Range Absolute % Difference of Range Twitter (TWTR) 29.51 – 74.73 153% Whole Foods Market (WFM) 37.02 – 65.59 77% Apple (AAPL) 55.55 – 95.05 71% Staples (SPLS) 10.86 – 17.30 59% Family Dollar Stores (FDO) […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Over the years, more and more investors have come to embrace the exchange-traded fund structure. For the most part, many have chosen ETFs over mutual funds because of the significantly lower expense, as well as the ability to trade these securities throughout the day [see Understanding the Mutual Fund vs. ETF Cost Difference]. Though cost and ease-of-use are two important factors, investors do not always realize the biggest benefit of ETFs – diversification. Exchange-traded funds allow investors to tap into nearly every corner of the investable universe, while at the same time mitigating the risks associated with holding a single stock. To visualize this risk, let’s put single stock volatility into perspective: Company 52 Week Range Absolute % Difference of Range Twitter (TWTR) 29.51 – 74.73 153% Whole Foods Market (WFM) 37.02 – 65.59 77% Apple (AAPL) 55.55 – 95.05 71% Staples (SPLS) 10.86 – 17.30 59% Family Dollar Stores (FDO) […]
