Exchange Traded Funds
As you read in the last chapter, we sometimes think of mutual funds as a rather new innovation, only to learn they’re not new at all. Exchange traded funds (ETFs), on the other hand, which share characteristics of both stocks and mutual funds, really are a relatively recent addition to the financial stage.
In this chapter, we’ll learn what ETFs are, how long they’ve been around, and how they came to be so popular. If you don’t know much about ETFs, be prepared to learn, both in this chapter and from other aspects of your financial education. Many financial people are crazy about ETFs, and they’ve recently enjoyed a surge in popularity, indicating they’ll become increasingly important. Currently, they hold about ...