| Investors need to understand Exchange Traded Funds–”ETFs”–before they jump in thinking they are just like mutual funds. Your broker or adviser may have pitched the product to you already. It’s the hottest thing on the Street, and that means investors need to be wary.
In 2008, many investors betting on a market downturn flocked to “inverse” and “leveraged” funds. An inverse ETF is designed to return the inverse–or opposite–of whatever index or benchmark it tracks. A leveraged ETF is designed to return a multiple of the daily performance of the index or benchmark it tracks..............................................Full Article: Source
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