4 ETFs To Consider And One To Avoid
By Osman Gulseven:An exchange traded fund [ETF] is one of the easiest ways to achieve diversified portfolio. ETFs have been around since the early 90s, but recent events increased their popularity. An ETF consists of a basket of securities, which are bundled under a single ticker. Thus, buyers of an ETF get an immediate exposure to all stocks within this ETF's portfolio. From this perspective, an ETF looks like a mutual fund. However, compared to mutual funds, exchange traded funds have several advantages. Their expense ratios tend to be much lower. There is no minimum investment requirement. They can be purchased and sold, just like other stocks. Most importantly, they are passively managed, where the turnovers and turnover-related costs are minimal.Most ETFs track a general index, such as S&P 500, Russell 1000, or MSCI. However, there are also several ETFs which concentrate on high-yield sectors or cherry pick the high-yielders fromComplete Story »
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