ETF –also known as exchange traded fund – is a type of investment that is traded in stock exchange market anywhere in the world in the same manner as stocks are traded. ETF has broad spectrum of investment options that include bonds, commodities and stocks. The value of assets is calculated during the end of the trading day. People are more interested in this investment because it provides stock like features, tax efficiency and low costs. Nowadays, new investors can rely on ETF as this is most effective and popular way of getting good returns on investment.
What is Junior Miners ETF?
Junior Miners ETF is another fund option that is considered safe and secure for small investors as their money is completely safeguarded. Due to great benefits and advantages the Junior Miners ETF is quite popular among more than 3.6 billion in AUM. Most of the trading is rendered on daily basis like over 4 million shares are traded daily. It means buying and selling is quite easy for anyone. Junior Miners ETF is a minor product in large pool of money ensuring good returns whenever you want.
Why Should I Invest Junior Miners?
Why should I invest Junior Miners and when should I invest Junior Miners are questions also come to the mind of new investors. Investment promises of good returns as the fund is invested in around 70 to 80 percent of the total assets in securities that consists the index. Here the role of index is quite important because it follows complete performance of domestic as well as foreign openly traded companies having medial and small capitalization including especially in mine sector for silver and gold.
Advantages of Small Cap Mining Companies
According to Ubika Research Senior Analyst Vishy Karamadam, small cap mining companies is profitable idea for investment for investors willing to have development and growth potential of small caps and good income at the same time and also looking for the best exposure to commodities. Investing in small cap mining companies could be a good beginning for new comers in financial market as stocks having growth and income opportunities could be identified easily.
Why Should I Invest In Junior Mining Companies?
For regular and additional supply of commodities, mining industry is quite dependent on junior mining companies, thus giving more investment options for people like you. If you want to invest in junior mining companies it would be a wise decision because junior mining companies have no dearth of developing, exploring and monetizing new mines to create extra supply to meet the market demand. But, junior mining companies might pose higher reward/risk in comparison to large cap miners. But risk could be reduced by diversifying the fund and investment in number of junior mining companies.
Future of Junior Mining Sector
Retail and industrial buying is required for junior mining sector due to which trading volume is increasing day by day as new resources are being developed that results in more investment opportunities and options.