Add in Introduction to ETFs (#1973)

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---
title: Exchange Traded Funds (ETFs)
title: Introduction to ETFs
keywords: "etfs, exchange traded funds, fund, basket, retail, stocks"
excerpt: "The Introduction to ETFs explains how to use the
menu and provides a brief description of its sub-menus"
geekdocCollapseSection: true
---
The ETF menu enables you to lookup any ETF (<a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/ln/" target="_blank">ln</a> and <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/ld/" target="_blank">ld</a>) and
obtain an <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/overview/" target="_blank">overview</a>,
<a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/holdings/" target="_blank">holdings</a>,
<a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/weights/" target="_blank">weights</a> and
<a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/news/" target="_blank">news</a> about the chosen ETF. Furthermore, sub-menus reside in this menu that can be used to <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/stocks/comparison_analysis/" target="_blank">compare companies</a> within the ETF, discover gainers and losers within <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/disc/" target="_blank">discovery</a> and apply advanced <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/common/technical_analysis/" target="_blank">technical indicators</a> and <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/common/prediction_techniques/" target="_blank">prediction techniques</a>. Lastly,
it also has the option to export multiple ETFs to Excel with <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/pir/" target="_blank">pir</a>.
In recent years, exchange-traded funds have become one of the most essential and profitable products offered for individual investors. ETFs have a number of advantages and, when used properly, can help investors accomplish their investment objectives.
In a nutshell, an ETF is a collection of securities that may be purchased or sold on a stock exchange through a brokerage business. ETFs are available in almost every asset class imaginable, ranging from standard investments to so-called nontraditional assets such as commodities and currencies. Furthermore, new ETF formats enable investors to short markets, obtain leverage, and avoid paying short-term capital gains taxes.
## How to use
**Available commands**
{{< toc-tree >}}
The ETF menu is called upon by typing `etf` which opens the following menu:
![ETF Menu](https://user-images.githubusercontent.com/46355364/174823477-48d3c21f-eb88-4942-b513-dbb4269cc9ee.png)
You have the ability to look up any ETF (<a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/ln/" target="_blank">ln</a> and <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/ld/" target="_blank">ld</a>). With the example below, the `ld` command is used that searches the description of the ETFs. Then the search query is entered with is `500`. Lastly, the `-l` argument is included which refers to `limit` and is maxed to `15` ETFs.
````
2022 Jun 21, 09:14 (🦋) /etf/ $ ld 500 -l 15
ETFs by Total Assets
┏━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━┓
┃ ┃ Name ┃ Family ┃ Category ┃ Total Assets [M] ┃
┡━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━┩
│ VOO │ Vanguard S&P 500 ETF │ Vanguard │ Large Blend │ 705316.98 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SPY │ SPDR S&P 500 ETF Trust │ SPDR State Street Global Advisors │ Large Blend │ 363964.50 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ IVV │ iShares Core S&P 500 ETF │ iShares │ Large Blend │ 248764.65 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ ITOT │ iShares Core S&P Total U.S. Stock Market ETF │ iShares │ Large Blend │ 38539.13 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ IVW │ iShares S&P 500 Growth ETF │ iShares │ Large Growth │ 30874.18 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ RSP │ Invesco S&P 500 Equal Weight ETF │ Invesco │ Large Blend │ 26551.87 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SCHB │ Schwab U.S. Broad Market ETF │ Schwab ETFs │ Large Blend │ 20675.03 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ IVE │ iShares S&P 500 Value ETF │ iShares │ Large Value │ 19373.45 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SDY │ SPDR S&P Dividend ETF │ SPDR State Street Global Advisors │ Large Value │ 17140.94 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SCHP │ Schwab U.S. TIPS ETF │ Schwab ETFs │ Inflation-Protected Bond │ 16553.40 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SCHA │ Schwab U.S. Small-Cap ETF │ Schwab ETFs │ Small Blend │ 15301.01 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SPYV │ SPDR Portfolio S&P 500 Value ETF │ SPDR State Street Global Advisors │ Large Value │ 11590.81 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SPYG │ SPDR Portfolio S&P 500 Growth ETF │ SPDR State Street Global Advisors │ Large Growth │ 10514.91 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SPLG │ SPDR Portfolio S&P 500 ETF │ SPDR State Street Global Advisors │ Large Blend │ 9850.30 │
├──────┼──────────────────────────────────────────────┼───────────────────────────────────┼──────────────────────────┼──────────────────┤
│ SPLV │ Invesco S&P 500 Low Volatility ETF │ Invesco │ Large Blend │ 7922.23 │
└──────┴──────────────────────────────────────────────┴───────────────────────────────────┴──────────────────────────┴──────────────────┘
````
This results in a selection of <a href="https://www.investopedia.com/ask/answers/12/what-is-a-stock-ticker.asp" target="_blank">tickers</a>, name, family, category and total assets (estimation). With this information, you can load in one of the tickers into the menu.
This can be done with <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/load" target="_blank">load</a>.
See the following example:
````
2022 Jun 21, 09:22 (🦋) /etf/ $ load VOO
Top company holdings found: AAPL, MSFT, AMZN, GOOGL, TSLA
````
To then view the stock chart, you can call <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/candle/" target="_blank">candle</a>
which shows a candle chart for the defined period (by default set to a year by `load`):
![Candle Chart of VOO](https://user-images.githubusercontent.com/46355364/174823545-6695f9b0-864c-4b94-a612-baa8087d1858.png)
By calling `?` or `help` the ETF menu re-appears. Here you can see that multiple commands menus have turned blue. Because of loading
a ticker, these menus can now be used in combination with the chosen ticker.
![ETF Menu with ETF Loaded](https://user-images.githubusercontent.com/46355364/174823623-42f0c54c-93a0-484e-a0b8-b82302977b29.png)
For example, the ETF's weights can now be depicted with the following:
````
2022 Jun 21, 09:45 (🦋) /etf/ $ weights
````
Which shows the following graph:
![Weights of VOO](https://user-images.githubusercontent.com/46355364/174823708-bdf1221f-c183-435a-b436-f0319123f13d.png)
## Sub-menus available
The ETF menu has a few sub-menus available to delve further into a specific ETF or screen multiple ETFs at the same time. To find more information about each menu, click on one of the following:
- <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/stocks/comparison_analysis/" target="_blank">Introduction to Comparison Analysis</a>: have the ability to compare companies within the ETF based on, among other things, correlation, financial statements, sentiment, valuations and performance.
- <a href="disc" target="_blank">Introduction to ETF Discovery</a>: discover trending ETF based on their returns (gainers and decliners) as well as activity.
- <a href="scr" target="_blank">Introduction to ETF Screener</a>: provides the ability to screen companies within the ETF based on a preset as well as the ability to screen by category.
- <a href="/OpenBBTerminal/terminal/common/technical_analysis" target="_blank">Introduction to Technical Analysis</a>: analysis the chosen ETF's historical data extensively with moving averages and momentum, trend, volatility and volume indicators.
- <a href="/OpenBBTerminal/terminal/common/prediction_techniques" target="_blank">Introduction to Prediction Techniques</a>: apply advanced AI and Machine Learning models to form prediction of future ETF prices including Recurrent Neural Network (RNN),
Autoregressive Integrated Moving Average (ARIMA) and Monte Carlo forecasting.
## Examples
If we want to learn more about a total market ETF, we can do the following, starting from the `etf` menu and using
the `ld` command where we specify with `-l` we wish to see `15` ETFs max.
```
2022 Jun 21, 10:08 (🦋) /etf/ $ ld total market -l 15
ETFs by Total Assets
┏━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━┓
┃ ┃ Name ┃ Family ┃ Category ┃ Total Assets [M] ┃
┡━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━┩
│ VTI │ Vanguard Total Stock Market Index Fund ETF Shares │ Vanguard │ Large Blend │ 1169855.61 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ ITOT │ iShares Core S&P Total U.S. Stock Market ETF │ iShares │ Large Blend │ 38539.13 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XBI │ SPDR S&P Biotech ETF │ SPDR State Street Global Advisors │ Health │ 7845.92 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ HYLB │ Xtrackers USD High Yield Corporate Bond ETF │ Xtrackers │ High Yield Bond │ 6760.46 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ KRE │ SPDR S&P Regional Banking ETF │ SPDR State Street Global Advisors │ Financial │ 5101.42 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XOP │ SPDR S&P Oil & Gas Exploration & Production ETF │ SPDR State Street Global Advisors │ Equity Energy │ 3828.98 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XHB │ SPDR S&P Homebuilders ETF │ SPDR State Street Global Advisors │ Consumer Cyclical │ 2095.61 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XME │ SPDR S&P Metals and Mining ETF │ SPDR State Street Global Advisors │ Natural Resources │ 1876.30 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ SCHK │ Schwab 1000 ETF │ Schwab ETFs │ Large Blend │ 1782.93 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XAR │ SPDR S&P Aerospace & Defense ETF │ SPDR State Street Global Advisors │ Industrials │ 1364.05 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ FPXI │ First Trust International Equity Opportunities ETF │ First Trust │ Foreign Large Growth │ 1124.12 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XSD │ SPDR S&P Semiconductor ETF │ SPDR State Street Global Advisors │ Technology │ 976.82 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XHE │ SPDR S&P Health Care Equipment ETF │ SPDR State Street Global Advisors │ Health │ 802.28 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ XRT │ SPDR S&P Retail ETF │ SPDR State Street Global Advisors │ Consumer Cyclical │ 781.05 │
├──────┼────────────────────────────────────────────────────┼───────────────────────────────────┼───────────────────────────┼──────────────────┤
│ UWM │ ProShares Ultra Russell2000 │ ProShares │ Trading--Leveraged Equity │ 746.08 │
└──────┴────────────────────────────────────────────────────┴───────────────────────────────────┴───────────────────────────┴──────────────────┘
```
It seems Vanguard Total Stock Market Index Fund ETF Shares (VTI) is by far the largest ETF in this list so let's <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/load" target="_blank">load</a> it in.
Also, a larger period is chosen by using `-s` as shown in the documentation:
````
2022 Jun 21, 10:08 (🦋) /etf/ $ load VTI -s 2010-01-01
Top company holdings found: AAPL, MSFT, AMZN, GOOGL, TSLA
````
We can now plot the corresponding ETF chart with <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/candle/" target="_blank">candle</a> which shows
the company's historical data from `2010-01-01` until the current date. We are also adding in trendlines with `-t`.
```
2022 Jun 21, 10:13 (🦋) /etf/ $ candle -t
```
![Candle Chart with Trendlines](https://user-images.githubusercontent.com/46355364/174823785-ec11cb1a-dbf0-45a7-b086-31542ece39a3.png)
Now we can go ahead and explore more about the ETF by running <a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/holdings/" target="_blank">holdings</a> and
<a href="https://openbb-finance.github.io/OpenBBTerminal/terminal/etf/weights/" target="_blank">weights</a> using the `--raw` argument for weights to display a table instead of a graph.
```
2022 Jun 21, 10:16 (🦋) /etf/ $ holdings
ETF Holdings
┏━━━━━━━┳━━━━━━━━━━┳━━━━━━━━━━━━━┓
┃ ┃ % Of Etf ┃ Shares ┃
┡━━━━━━━╇━━━━━━━━━━╇━━━━━━━━━━━━━┩
│ AAPL │ 5.58% │ 454,234,952 │
├───────┼──────────┼─────────────┤
│ MSFT │ 4.93% │ 219,650,708 │
├───────┼──────────┼─────────────┤
│ AMZN │ 2.51% │ 12,672,230 │
├───────┼──────────┼─────────────┤
│ GOOGL │ 1.67% │ 8,869,298 │
├───────┼──────────┼─────────────┤
│ TSLA │ 1.52% │ 24,224,503 │
├───────┼──────────┼─────────────┤
│ GOOG │ 1.47% │ 7,802,130 │
├───────┼──────────┼─────────────┤
│ BRK.B │ 1.30% │ 49,671,912 │
├───────┼──────────┼─────────────┤
│ JNJ │ 1.14% │ 77,035,899 │
├───────┼──────────┼─────────────┤
│ UNH │ 1.13% │ 27,566,141 │
├───────┼──────────┼─────────────┤
│ META │ 1.08% │ 67,655,143 │
└───────┴──────────┴─────────────┘
2022 Jun 21, 10:16 (🦋) /etf/ $ weights --raw
Sector holdings of VTI
Sector Weightings Allocation
┏━━━━━━━━━━━━━━━━━━━━━━━━┳━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┓
┃ ┃ % of holdings in the sector ┃
┡━━━━━━━━━━━━━━━━━━━━━━━━╇━━━━━━━━━━━━━━━━━━━━━━━━━━━━━┩
│ Technology │ 23.55 │
├────────────────────────┼─────────────────────────────┤
│ Healthcare │ 13.97 │
├────────────────────────┼─────────────────────────────┤
│ Financial Services │ 13.42 │
├────────────────────────┼─────────────────────────────┤
│ Consumer Cyclical │ 10.61 │
├────────────────────────┼─────────────────────────────┤
│ Industrials │ 9.00 │
├────────────────────────┼─────────────────────────────┤
│ Communication Services │ 7.98 │
├────────────────────────┼─────────────────────────────┤
│ Consumer Defensive │ 6.35 │
├────────────────────────┼─────────────────────────────┤
│ Energy │ 4.81 │
├────────────────────────┼─────────────────────────────┤
│ Real Estate │ 3.78 │
├────────────────────────┼─────────────────────────────┤
│ Basic Materials │ 2.69 │
├────────────────────────┼─────────────────────────────┤
│ Utilities │ 2.29 │
└────────────────────────┴─────────────────────────────┘
```

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Search for an ETF by description using either FinanceDatabase or StockAnalysis as the source.
```text
usage: ld [-d DESCRIPTION [DESCRIPTION ...]] [-l LIMIT] [-h] [--export {csv,json,xlsx}]
```
Lookup by description [Source: FinanceDatabase/StockAnalysis.com]
Search for an ETF by description using either FinanceDatabase or StockAnalysis as the source. [Source: FinanceDatabase/StockAnalysis.com]
```
optional arguments:
-d DESCRIPTION [DESCRIPTION ...], --description DESCRIPTION [DESCRIPTION ...]
Name to look for ETFs (default: None)

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Search for an ETF by name, using either FinanceDatabase or Stockanalysis.com as the source.
```text
usage: ln -n NAME [NAME ...] [-s {sa,fd}] [-l LIMIT] [-h] [--export {csv,json,xlsx}]
ln: error: the following arguments are required: -n/--name
```
Search for an ETF by name, using either FinanceDatabase or Stockanalysis.com as the source.
````
optional arguments:
-n NAME [NAME ...], --name NAME [NAME ...]
Name to look for ETFs (default: None)
-h, --help show this help message (default: False)
--export EXPORT Export raw data into csv, json, xlsx (default: )
-l LIMIT, --limit LIMIT
Number of entries to show in data. (default: 5)
--source {sa,fd} Data source to select from (default: None)
````
Sample output:
```

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@@ -0,0 +1,54 @@
```text
usage: load [-t TICKER] [-s START] [-e END] [-l LIMIT] [-h]
```
Load ETF ticker to perform analysis on.
````
optional arguments:
-t TICKER, --ticker TICKER
ETF ticker (default: None)
-s START, --start START
The starting date (format YYYY-MM-DD) of the ETF (default: 2021-06-20)
-e END, --end END The ending date (format YYYY-MM-DD) of the ETF (default: 2022-06-21)
-l LIMIT, --limit LIMIT
Limit of holdings to display (default: 5)
-h, --help show this help message (default: False)
````
Example:
```
2022 Jun 21, 09:18 (🦋) /etf/ $ load voo
Top company holdings found: AAPL, MSFT, AMZN, GOOGL, TSLA
2022 Jun 21, 09:18 (🦋) /etf/ $ ?
╭─────────────────────────────────────────────────────────────────────────────────────────────────────── ETF ────────────────────────────────────────────────────────────────────────────────────────────────────────╮
│ │
│ ln lookup by name [FinanceDatabase / StockAnalysis] │
│ ld lookup by description [FinanceDatabase] │
│ load load ETF data [Yahoo Finance] │
│ │
│ Symbol: VOO │
│ Major holdings: AAPL, MSFT, AMZN, GOOGL, TSLA │
│ │
│ > ca comparison analysis, get similar, historical, correlation, financials │
│ > disc discover ETFs, gainers/decliners/active │
│ > scr screener ETFs, overview/performance, using preset filters │
│ │
│ overview get overview [StockAnalysis] │
│ holdings top company holdings [StockAnalysis] │
│ weights sector weights allocation [Yahoo Finance] │
│ summary summary description of the ETF [Yahoo Finance] │
│ news latest news of the company [News API] │
│ candle view a candle chart for ETF │
│ │
│ pir create (multiple) passive investor excel report(s) [PassiveInvestor] │
│ compare compare multiple different ETFs [StockAnalysis] │
│ │
│ > ta technical analysis, ema, macd, rsi, adx, bbands, obv │
│ > pred prediction techniques, regression, arima, rnn, lstm │
│ │
╰─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── OpenBB Terminal v1.3.0 (https://openbb.co) ─╯
```

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```text
usage: summary [-h]
```
Displays the summary description of the loaded ETF.
```
optional arguments:
-h, --help show this help message (default: False)
```

View File

@@ -1074,6 +1074,8 @@ main:
ref: "/terminal/etf/ln"
- name: ld
ref: "/terminal/etf/ld"
- name: load
ref: "/terminal/etf/load"
- name: overview
ref: "/terminal/etf/overview"
- name: holdings