Finding and Buying Exchange-Traded Funds
In This Chapter
Finding out how exchange-traded funds (ETFs) differ from mutual funds
Locating ETFs that fit your needs using online tools
Understanding how ETFs are bought and sold online
Working with websites that recommend premade portfolios using ETFs
Uncovering ways to research exchange-traded funds
A relatively new type of fund called an exchange-traded fund, or ETF, is exploding with popularity. Like index mutual funds, most ETFs invest in baskets of stocks tied to a stock market index. ETFs have proven to be so popular that new types are being created, including variants that own investments in commodities or stocks picked by human money managers. But the key way ETFs differ from mutual funds is that they trade during the day just like an individual stock. This important difference gives ETFs an edge over mutual funds for some investors. ETFs have lured more than $1 trillion of investors’ cash since they started to catch ...