What Are Exchange Traded Funds?
This article is a brief introduction to explain what Exchange Traded Funds are, how they work, and how you can use them as part of your investment arsenal.
Basically, an Exchange Traded Fund is a collection of shares that will try to replicate the price action of a particular index such as the S&P500 or a market sector such as Energy or Technology.
Exchange Traded Funds were first introduced in 1989 on the Toronto Stock Exchange, and have gained popularity ever since.
The American Exchange lists over 100 Exchange Traded Funds. The first to be listed here was the SPDR in 1993.
