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