Chapter 11

Finding and Buying Exchange-Traded Funds

IN THIS CHAPTER

Bullet Finding out how exchange-traded funds (ETFs) differ from mutual funds

Bullet Locating ETFs that fit your needs using online tools

Bullet Understanding how ETFs are bought and sold online

Bullet Working with robo-advisor website that recommend premade portfolios using ETFs

Bullet Uncovering ways to research exchange-traded funds

A still relatively new type of fund called an exchange-traded fund, or ETF, is exploding in 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 constantly being created, including variants that own investments in commodities or stocks picked by human money managers. ETFs differ from mutual funds in several key ways, including that they trade during the day just like an individual stock and have potential tax advantages over mutual funds. These important differences give ETFs an edge over mutual funds for some investors. ...

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