ETF Family Trading: Good Sense?

Discussion in 'ETFs' started by marketsurfer, Jun 15, 2009.


    Exchange Traded Funds or ETFs for short, have become extremely popular over the last few years. They provide the investor easy access to an entire sector or index by trading one share of stock.

    Simply, ETFs are constructed similar to a fund, but trade like an exchange traded stock. ETFs offer investors diversity, liquidity, focus, and transactional ease. These factors have led to the top 3 most traded U.S. stocks being ETFs and 5 of the top 10 most active U.S. stocks are ETFs.

    This article will provide a brief overview of the 6 primary ETF families so that you can choose which family and ETF best fits your strategy, outlook and investment objectives. The 6 ETF families are iShares, SPDRS, Rydex, Vanguard, ProShares, and PowerShares. Let's drill down into each of these unique ETF families.

    iShares - The world's largest ETF family is distributed by SEI Investments and a subsidiary of Barclay's Bank serves as the advisor. They offer a wide palette of ETFs from bond funds, domestic and international indexes to targeted sectors like natural