Exchange Traded Funds (ETFs)?
ETFs are open-ended, registered investment companies organized under the Investment Company Act of 1940 that have been granted certain exemptive relief from the SEC to allow secondary market trading on the AMEX exchange. ETFs represent ownership in over 60 different index funds compiled by one of the following index providers: Standard & Poor’s, Dow Jones & Company, Frank Russell Company, Cohen & Steers Capital Management, Inc., the Nasdaq Stock Market, Inc., Goldman, Sachs & Co., Morgan Stanley Capital International Inc., and Lehman Brothers. As of December 31, 2002, ETFs had assets of over $102 billion, up from $84.6 billion in 2001 and only $1.1 billion in 1995. ETFs are easy to trade, highly liquid, more tax-efficient than traditional mutual funds and can be bought with a minimal investment. Trading ETFs can be a successful strategy in both bull and bear markets. They are a great way to gain low cost exposure to specific sectors, industry groups or global markets. What Are ETFs And
