The investment world's love affair with ETFs continued in 2010, as more than 1,000 funds managed assets of $940 billion. Here's a review of the best and the worst performers, and a few reminders about how to use these investment vehicles safely.
Stock market volatility has driven many investors out of stocks and into bonds and other fixed-income investments. Bond ETFs have snared a big chunk of the money for their flexibility and safety.
It looks like no-commission trades for exchange-traded funds are here to stay. Several of the largest ETF brokerages -- including iShares, Invesco Powershares and Charles Schwab -- say they don't plan to charge commission anytime soon.
The first half of 2010 has been anything but dull for exchange-traded fund investors. ETF assets in the U.S. decreased 0.4% to $772 billion as of June 30, but that actually indicates a serious inflow of cash: Equity markets, as measured by the S&P 500, fell 8.9% during the period.
You're thinking of investing in an exchange-traded fund, but what are the odds you're really going to read the whole prospectus? Not great. But don't buy blind: If you know what to look for, you can get much of the most important information from the fact sheet.
You're a savvy investor: You know your way around a mutual fund. But figuring out exchange-traded funds can be a whole different ballgame, so we've asked a few financial experts to help demystify the art of successful ETF investing.
Portfolios made up entirely of exchange-traded funds have appeal. ETFs often have lower expenses than mutual funds, bring certain tax benefits, and trade throughout the day. But investors need to make sure they are properly diversified if they go they all-ETF route.
There's one word to describe the exchange-traded bond fund business and market in 2009 -- booming. Indeed, last year more than $39 billion flowed into long-only bond ETFs, while more than $26 billion flowed out of long only U.S. stock ETFs. Can fixed-income investors expect more of the same in 2010?
