Exchange Traded Funds (ETF)

The abundance of ETFs available today opens many options to investors.

Now using only ETFs, an investor can choose among the following investment categories:

1.  Small-, mid-, large- and broad stock capitalization
2.  Growth, value and core stocks
3.  Global and international stocks, including divisions by market sector or country
4.  U.S. stock market sectors, including many subsectors
5.  Fixed income
6.  Commodities, both broad indexes and several individual commodities
7.  Currencies
8.  Leveraged versions of many types of ETFs
9.  Inverse or short selling of many stock benchmarks

ETFs increase diversification in several ways. An investor, of course, can purchase a broad-based index ETF such as one replicating the S&P 500 and get instant diversification regardless of the amount of money invested.

Dan