Monday, January 9, 2012

Investopedia: A Brief History of Exchange-Traded Funds

In less than 20 years, exchange-traded funds (ETFs) have become one of the most popular investment vehicles for both institutional and individual investors. Often promoted as cheaper, and better, than mutual funds, ETFs offer low-cost diversification, trading and arbitrage options for investors.

Now with over $1 trillion assets under management, new ETF launches number from several dozen to hundreds, in any particular year. ETFs are so popular that many brokerages offer free trading in a limited number of ETFs to their customers. (For related reading, see Introduction To Exchange-Traded Funds.)

Read the full piece here:
http://www.investopedia.com/articles/exchangetradedfunds/12/brief-history-exchange-traded-funds.asp

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