Chapter 5
Benefiting from Exchange-Traded Funds
IN THIS CHAPTER
Following developments in the ETF market
Weighing the pros and cons of investing in ETFs
Taking a look at the current ETF offerings
Choosing the most suitable product
Driven by growing investor demand for commodities, many financial institutions are now offering the commodities exchange-traded fund (ETF). This breed of fund enables you to buy into a fund that offers the diversification inherent in a mutual fund and the added benefit of being able to trade that fund like a regular stock. Thus, you get a powerful combination of diversification and liquidity. ETFs are becoming popular with investors because they provide the benefits of investing in a fund with the ease of trading a stock. This hybrid instrument is one of the best ways for investors to access the commodities markets.
Getting to Know ETFs
ETFs offer many advantages to investors because they provide exposure to asset classes and specific investments that would otherwise be difficult for the average investor to access, such as uranium and palladium. In addition, ...
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