If you’re thinking about investing in ETFs, you are not alone. These funds, which are “exchange traded funds”, are gaining more and more adherents all the time. This is because they offer some key advantages to the average investor.
So this post will be a quick ‘n dirty ETF Guide for you. Let’s get started.
ETFs are like mutual funds, so the pool of investment risk is shared by many people. However, they are traded just like stocks, and thus certain advantages that stocks have over mutual funds such as allowing investors to collect dividends, do intraday trading, and pay stock broker commissions instead of high management fees. Also, ETFs are used for “passive management” investment strategies, notably the ETF Wrap, where all invested monies are in ETFs, allowing an investor to have an “autopilot” investment strategy that uses indices instead of relying on the fallibility of active trading.
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