ETFs are an increasingly popular option for investors. As NOVA wealth management experts, we can help you understand the benefits of ETFs and if they are an appropriate investment product for you.
What is an ETF?
ETF stands for “exchange-traded fund.” It is an investment fund that is traded on stock exchanges. It holds assets like bonds, commodities, or stocks and trades them near its net asset value over the span of the trading day. ETFs offer tax efficiency, low costs and stock-like features.
Good news for investors.
ETFs are giving investors new options. Currency hedging is one of the most popular trends in ETFs, especially over the past year. It can help provide clients with the flexibility of risk management in their portfolio. Over 2014, the number of currency-hedged ETFs has doubled because of the economic environment and the ongoing expansion of ETFs in the investment spectrum.
Currency hedging allows investors to gain the much-needed international exposure without the hassle of being affected by adjustments in the exchange rate. This is made possible by entering into a separate investment that spikes up when the currency falls against the dollar. Currency hedging measures the underlying currency exposure of the current holdings by partnering with another party to accept the returns on one currency in exchange for the other.
Currency hedging is now available to investors and is starting to be the next asset class that was once available only to institutions.
Who is AOG Wealth Management?
AOG Wealth Management is an independent Registered Investment Advisor specializing in managing wealth for individuals, companies and endowment funds. As a boutique investment advisory firm, AOG serves clients by offering investment vehicles typically not utilized by larger wealth management firms by using a four-pillar approach combining investment strategies, tax efficiency expertise, legal / estate planning and risk management. Going beyond the traditional asset classes of stocks, bonds and cash, and employing an endowment-style model, AOG adds up to five non-traditional asset classes with low stock market correlation. Our model forces a “buy lower” and “sell higher” discipline providing asset management services to clients in Northern Virginia and Washington, DC – including Arlington, Reston, Great Falls, McLean, Vienna, Leesburg, and Georgetown. For quality asset management, call us at (866) 993-0203 or visit us on the Web at www.aogwealth.com today.
AOG Wealth Management, Inc. does not provide tax or legal advice. The opinions and views expressed here are for informational purposes only. Please consult with your tax and/or legal advisor for such guidance.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.