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