| Many investors still don't know about Exchange | | | | features such as limit orders, stop orders and |
| Traded Funds (or ETFs) and their advantages | | | | short sellingETFs come in many different flavors. |
| over traditional mutual funds. In this article, we'll | | | | They track all the major indexes like the Dow, |
| examine Exchange Traded Funds, their history, | | | | S&P 500, NASDAQ 100, Russell 2000 and others. |
| performance and advantages and why you should | | | | They're also available for investors who want to |
| never buy a mutual fund again.ETF 101Exchange | | | | trade sectors like energy, technology, precious |
| Traded Funds can most accurately be described | | | | metals, financial, health care, emerging markets, |
| as the happy marriage of a stock with a mutual | | | | interest rates and many more.Introduced over 12 |
| fund.Like mutual funds, when an investor buys an | | | | years ago, ETFs were initially mostly used by |
| ETF, he is buying a pool of securities at one time. | | | | professional traders, but in recent years, have |
| For instance, an ETF known as DIA, or | | | | experienced rapid growth as a popular investment |
| "Diamonds." allows the investor to take a position | | | | vehicle with public investors.ETFs have gained such |
| in the Dow Jones Industrial Average.Like a stock, | | | | widespread acceptance and popularity because |
| an ETF can be purchased through a brokerage | | | | they provide significant advantages over mutual |
| account, can be traded throughout the day, can | | | | funds. |
| be bought on margin and offers stock-like trading | | | | |