Hord Sector ETFs

Hord Team
May 14, 2021
Blog

What is a sector ETF in traditional finance?

An ETF, or exchange-traded fund, is a pooled investment vehicle that tracks a basket of assets like an index fund. An ETF is tradeable in itself like a common stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

A sector ETF is an ETF that invests specifically in stocks and securities of a particular industry or sector. For instance, a sector ETF may track a representative basket of energy stocks or big tech stocks.

Sector ETFs have become popular among investors and can be used for hedging and speculating. They allow investors to get exposure to an entire sector by investing in a single asset. Assets in a sector ETF are passively managed based on an underlying index.

The benefits of sector ETFs

  • A Sector ETF tracks a basket of representative assets that are specific to an industry sector rather than the broad market
  • Sector ETFs can be used to invest in an entire industry without having to piece together the individual assets in that sector
  • Sector ETFs allow for cheap and automatic rebalancing of an investor’s portfolio

What is a Hord sector ETF?

A Sector ETF on Hord works just like a sector ETF in TradFi but now in DeFi. The ETF tokens represent the value of the underlying assets of a certain sector within the industry and are an asset in itself that can be traded on the open market.EA

Examples of sector indices to be featured as sector ETFs on Hord are:

  • Exchange tokens
  • DEX tokens
  • DeFi
  • CeFi
  • Protocols
  • Oracles

And many more…

The exchange token ETF, for example, will hold different exchange tokens, like BNB, HT, FTT, CRO, OKB, KCS and GT, in a ratio that is based on their relative size in terms of market capitalization.

Exchange Token ETF

An investor that believes in the long-term benefit of investing in exchange tokens, can easily and affordably make a single purchase of Hord’s exchange token sector ETF, with almost no fees.

This is just one example of many more to come.

The benefits of Hord sector ETFs

  • Instant diversification: Instead of betting all your money on one horse you are perfectly diversified within your sector of choice.
  • Ease of use: No need to purchase lots of different tokens and perform difficult calculations in order to build a portfolio.
  • Almost no fees: Save an enormous amount of money on fees by purchasing a single ETF token, instead of 5, 10, or even upwards of 50 different tokens.
  • Automatic rebalancing: You never have to rebalance your portfolio to accurately represent current market conditions.

How do Sector ETFs benefit HORD token holders?

Since Sector ETFs represent a large portion of the market in a very convenient manner and have a number of additional benefits compared to single asset investing, they enjoy a massive trading volume. And since Hord ETFs are traded on Hord’s orderbook DEX. They will be one of the biggest drivers of activity on the Hord platform

And activity means token burning…

Every transaction on the Hord DEX burns HORD tokens forever. Diminishing supply while at the same time increasing demand for the token. These deflationary tokenomics are what drive the Hord platform and HORD token.

Takeaways

Sector ETFs are an amazing way for investors to reduce risk, increase diversified exposure and mitigate costs. They will generate an incredible amount of volume on the Hord orderbook DEX. This will burn HORD tokens constantly and increase the value of the asset.

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