Thursday, October 7, 2010

The different Types of ETF (Exchange Traded Funds)

Types-of-ETFs-Exchange-Traded-Funds So are you asking the obvious question: What are exchange traded funds? If so you are in a fraternity (or sorority, ladies) that is shrinking rapidly. ETFs have exploding growth, topping 1,000 total funds earlier this year. Actually there were less than 100 as recently as 2003, but over the last four years the growth in the number of exchange traded funds has been 400%.
Exchange traded funds have some similarities to stocks in that they will be traded through stock exchanges. They will mostly try to stay in line with some kind of stock market index like the S&P 500.

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