Understanding Ally ETFs and How They Work

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Ally ETFs are a type of exchange-traded fund that allows investors to diversify their portfolios with a single investment.

They work by pooling money from many investors to buy a variety of assets, such as stocks, bonds, and commodities.

This diversification helps to reduce risk and increase potential returns, making them a popular choice for investors.

Ally ETFs are traded on major stock exchanges, just like individual stocks, and can be bought and sold throughout the trading day.

Understanding Ally ETFs

The defence ETF provides access to companies exposed to NATO and NATO+ ally spending, which is expected to grow due to the need for modernised defence solutions to counter the rise in data breaches and cyber-attacks.

The defence market is expected to grow at a CAGR of 5.6% to $718.12 billion by 2027, and the cybersecurity market by a CAGR of 8.9% over the same period.

Here are some key performance figures for the NATO and NATONTR indices:

Note that past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product.

Exchange-Traded Funds, Explained

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You can invest in a particular sector or industry without choosing just one company with an ETF.

ETFs are made up of a collection of securities like stocks, commodities, bonds, and other investment types.

This allows you to invest in a particular sector, industry, or region instead of having to buy individual stocks.

Explore Data

You can dive into the data of Ally ETFs to get a better understanding of their performance and key metrics.

The data is easily accessible through watchlists, which allow you to track and analyze various aspects of the ETFs, including news, detailed metrics, company quotes, pricing info, dividend dates, and more.

To get a quick snapshot of the ETF's performance, you can look at the performance metrics, which are broken down into different time periods, such as 1 month, 3 months, 6 months, and year-to-date.

Here's a breakdown of the performance metrics for the NATO (Fund) and NATONTR (Index) as of January 31st, 2025:

It's worth noting that the performance figures are net data, and past performance is not an indicator of future results.

Defence ETF Objective

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The Defence ETF Objective is to provide exposure to companies generating revenue from NATO and NATO+ ally defence and cyber defence spending. Global military spending has been rising, reaching a record high of $2.2 trillion in 2022.

European NATO members are still lagging behind the 2% of GDP target, despite record spending.

Cyber attacks by state-sponsored actors are on the rise, making cyber defence a growing need.

Defence ETFs

Defence ETFs are a type of investment that focuses on companies involved in defence and cyber defence spending, particularly among NATO and NATO+ allies.

The defence market is expected to grow at a CAGR of 5.6% to $718.12 billion by 2027. This growth is driven by the need for modernised defence solutions to counter the rise in data breaches and cyber-attacks.

Despite record defence spending in 2022, most European NATO members need to spend more to close the gap and reach the 2% of GDP target outlined by the alliance. This creates a potential opportunity for investors in defence ETFs.

The defence ETF provides access to companies exposed to NATO and NATO+ ally spending, which are likely to benefit from the growing need for modernised defence solutions.

Key Information

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Ally has a long history, dating back to 1919 when it was founded as GMAC. Today, it offers hundreds of exchange-traded funds (ETFs) but doesn't have a proprietary fund family.

A broad stock fund and a broad bond fund can provide a good foundation for a retirement account, either as the entire basis for investing or to build upon with more complex investments.

If you're considering a Roth IRA, you should know that you can avoid paying taxes on investment returns by investing after-tax income now. This can be a smart strategy, especially since Ally's VTI and BKAG ETFs can serve as good starting points for Roth IRA investments.

Cost-Conscious Choices

Making cost-conscious choices is a crucial part of investing in ETFs. ETFs are generally less expensive to manage than other investments.

One way to save money is to choose a broker with a low execution fee. According to the article, some brokers charge as little as 0.00€ in execution fees.

However, be aware that some brokers may charge a higher execution fee, such as 1.50€ or 1.50% of the investment.

To make the most of your ETF savings plan, consider the following tips: 11 tips to save 100 Euro more into an ETF saving plan

Key Takeaways

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Ally has a long history, dating back to 1919 when it was founded as GMAC. It's amazing to see how far the company has come.

A broad stock fund and a broad bond fund can serve as a solid foundation for your retirement account, either as the sole investment or as a starting point for more complex investments. This combination provides a balanced approach to investing.

Roth individual retirement accounts (IRAs) are a great option for those who want to avoid paying taxes on investment returns. By investing after-tax income now, you can enjoy tax-free growth in the future.

If you're looking for a good starting point for your Roth IRA investments with Ally, consider VTI and BKAG. These options can provide a strong foundation for your investment portfolio.

Frequently Asked Questions

How much does Ally charge for ETFs?

Ally Invest charges no commission for online ETF trades. However, there may be additional costs for certain ETFs, so it's worth reviewing the details.

Tasha Kautzer

Senior Writer

Tasha Kautzer is a versatile and accomplished writer with a diverse portfolio of articles. With a keen eye for detail and a passion for storytelling, she has successfully covered a wide range of topics, from the lives of notable individuals to the achievements of esteemed institutions. Her work spans the globe, delving into the realms of Norwegian billionaires, the Royal Norwegian Naval Academy, and the experiences of Norwegian emigrants to the United States.

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