- Exchange-traded funds (ETFs) have been around since the early ’90s, but have exploded in popularity in the past few years — and with good reason.
ETFs trade like a stock, but track an index, commodity or a basket of securities that represent a particular market sector. They offer investors immense diversity, as well as a way to mitigate the risk associated with a single asset.
Despite their popularity, though, there are a number of misconceptions about ETF investing. And if you’re buying into any of them, chances are you aren’t making the best use possible (and most money) out of these diverse investment vehicles.
Keep reading to make sure you’re not falling victim to any of these ETF fallacies.
Don’t Buy Into These 7 ETF Myths
Article printed from InvestorPlace Media, http://www.investorplace.com/2010/03/etf-investing-myths/.
©2012 InvestorPlace Media, LLC
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