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Investing with exchange-traded funds

Posted on 14 November 2008

From Morningstar.co.uk: Exchange-traded funds (ETFs) offer investors a viable alternative to index tracking funds. ETFs and index funds are similar in that they both mirror the performance of various sector and stockmarket indices such as the Dow Jones Industrial Average, the FTSE 100 or the S&P 500.

Yet an ETF is an investment product that combines the characteristics of open-ended funds and shares. It is – like a fund – a basket of bonds or shares. But it tends to act more like a share…… Full Article: Source


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