The (Sort of Still) New Kid on the Block
In This Chapter
Discovering the origins of ETFs
Understanding their role in the world of investing today
Getting a handle on how they are administered
Finding out how they are bought and sold
Tallying their phenomenal growth
There are, no doubt, a good number of pinstriped ladies and gentlemen in and around Wall Street who froth heavily at the mouth when they hear the words exchange-traded fund. In a world of very pricey investment products and very well paid investment-product salespeople, ETFs are the ultimate killjoys.
Since their arrival on the investment scene in the early 1990s, more than 1,300 ETFs have been created, and ETF assets have grown faster than those of any other investment product. That’s a good thing. ETFs enable the average investor to avoid shelling out fat commissions or paying layers of ongoing, unnecessary fees. And they’ve saved investors oodles and oodles in taxes.
In the Beginning
When I was ...