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.
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