EXCHANGE TRADED FUNDS

An ETF is a pooled investment which can be bought and sold on a stock exchange, like a share in a companyETFs are type of index-tracking fund managed to accurately mirror the performance of an index, such as the FTSE-100 of leading UK blue-chip shares [see]. This means that the aim of an ETF is to provide investors with the same return as the underlying market.

For example, if the FTSE-100 index goes up by 10% during a year, an ETF tracking this index should provide investors with the same return as the underlying market. ETFs are available that track most major indices for stocks, bonds, commodities, and other asset types, providing efficient access to many markets for investors.

Pricing. Average management fees: 0.40% (equity funds), 0.17% (fixed-income).

Some very popular ETFs:

. SPY

. QQQ

. IWM

. BOND [see]. This ETF tracks one of the most well-known actively managed bond funds.

. HYG

. GLD

. SLV

. PCY

. CAF

. EWP

See also @KeithMcCullough for some trading strategies using ETFs.
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