Fund Style - Definition and ETF Research Reports

Fund Style - Definition and ETF Research Reports

Last Updated by WikiWealth

ETF Fund Style Definition (click here to see the ETF research report database)

Funds (ETFs, ETNs, and Mutual Funds) are broken down into classes depending on the types of investments the fund holds in it's portfolio. These distinctions are important for investors, because different classes dictate different market reactions to news and events. Value stocks are generally more stable than growth stocks, because their earnings are generally more stable no matter the investing climate. Growth stocks rely on constantly expanding markets that allow them to increase earnings and revenue. Growth stocks are generally best in growing markets, while value stocks are best when markets are in a slow or negative growth phase.

Regardless of the phase of growth or fund style, undervalued investments are the best to own no matter what. The fund style or investment type is a secondary focus that allows an investor to time the market.