Today’s post continuues Part 1 with a further explanation of this rapidly-growing alternative to the mutual fund. In my initial post I explained that ETFs

• are created by financial institutions in large blocks that can be freely converted into underlying securities
• are transparent, meaning that the underlying securities are publicly disclosed on a continuous basis
• trade continuously on financial exchanges at prices that generally move closely with the underlying securities
• are generally liquid, reflecting the liquidity of the underlying securities
• are usually (but not necessarily) linked to a securities index
• tend to have low management costs

Read the full article

In the last four years or so, there has been explosion of newly created exchange traded funds (ETFs) in the financial marketplace. What are these investment products, and how are they different from the more familiar mutual funds? Read the full article

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