ETF Trends
ETF Trends

Ever wonder how to figure out the price-to-earnings ratio of an exchange traded fund (ETF)? Knowing the price-to-earnings (P-E) ratio of an ETF is one way to determine how cheap or expensive it is. ETFs are investments that own the stocks of an index, so if you can get the P-E of the index, then you know the P-E of the ETF, says Matt Krantz for USA Today.

Another way to find the P-E for an ETF is through the ETF sponsor. Most of the major ETF providers offer the P-E ratio for each of the ETFs on their websites.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.