Introduction
Look up in the sky! . . . It’s a bird! . . . It’s a plane! . . . No, it’s Exchange-Traded Funds!
Exchange-traded funds are flying high. Better known by the acronym ETFs, each week new funds are launched on Wall Street exchanges and land in the portfolios of investors across the nation. While the hype surrounding an ETF launch may not compare to the glitz of an action-packed Superman sequel, some promoters of these investment vehicles make it sound as if their product could leap tall buildings in a single bound. A few ETF companies have even attempted to empower their funds with superpower-sounding names such as PowerShares, WisdomTree, ProFunds, and XShares.
Are PowerShares powerful? Are WisdomTree funds a wise investment choice? Do ProFunds perform like pros? Well, that remains to be seen. What we do know is that ETFs are an important evolution in the investment industry that may help you achieve financial success, and for that reason astute investors are learning all they can about them. The ETF Book gives you a broad and deep understanding of this revolutionary investment structure and provides the tools needed to become a more successful investor.
ETFs have many advantages and a few disadvantages over traditional open-end mutual funds. The advantages range from lower investment costs to increased trading flexibility. The disadvantages include a commission cost on each ETF trade and the arduous task of sorting out all the industry data and jargon (made easier by ...
