Exchange-Traded Funds: Clarity Amid the Clutter


Over the past decade, exchange-traded funds (ETFs) have become popular among investors in building investment portfolios. Although sometimes portrayed as unique instruments, ETFs are overwhelmingly similar to mutual funds, from both a regulatory and a structural standpoint. They also possess important features stemming from the method by which investors transact in fund shares, namely to create low-cost, broadly diversified investment portfolios, especially when implementing index-based strategies.

This content is available to FOX Members only.