The New It Fund

Wang, Penelope
May 2005
Money;May2005, Vol. 34 Issue 5, p120
The article discusses the benefits and risks of a type of investment called exchange-traded funds (ETF), which are index funds that you can buy and sell like stocks. ETFs give you the best of two investing worlds, the low costs and one-stop diversification of index funds, and the tax efficiency and flexibility of stocks. Although ETFs are a small part of the $8 trillion fund industry, assets are growing fast. Every time you buy or sell an ETF, you must go through a broker and pay a commission or fee. To build an ETF portfolio from scratch, stick with low-cost offerings from well-established ETF managers. INSETS: What Is an ETF?;Who Are ETFs Good For...;…And Not So Good For?.


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