Summary
Consider adding exchange-traded funds to your portfolio. More than $250 billion already is invested in them (which still pales next to the trillions in mutual funds).
Think of ETFs as mutual funds that trade like stocks. Many are index-based. By investing in one, you're simply putting your confidence in the companies in that index. Here are nicknames and ticker symbols for some ETFs of major indexes: S&P 500 (Spiders, SPY), the Nasdaq 100 (Cubes, QQQ), Total Stock Market (Vipers, VTI), Dow Jones Industrials (Diamonds, DIA), Russell 2000 (iShares Russell 2000, IWM), MCSI Japan Index (WEBS Japan, EWJ).See the full content of this document
Extract
The Motley Fool the Abcs of Etfs
With very low fees and tax-efficient infrequent trading, ETFs provide diversification among groupings of large businesses. They're also among the least time-consuming of all investing strategies. If you want to manage s...
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