The 411 on ETFs
Created in 1993, exchange-traded funds, referred to as ETFs, have seen a steady rise in popularity particularly among long-term investors looking for the flexibility found in stocks and the diversity of mutual funds. ETFs are traded on stock exchanges and can track a stock or bond index, as well as sectors, commodities and currencies. Their flexibility and tax efficiency (capital gains taxes can be rare due to low portfolio turnover) make carefully-selected ETFs within a sound strategy an attractive option for long-term investors.
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