Exchange-Traded Funds Flourish

Meg Richards, of the Associated Press, reviews the burgeoning trend of exchange-traded funds (ETF) investing in this article from Canoe Money. She cites statistics from the Investment Company Institute that show ETF assets have grown to $242.66 billion through the second half of 2005, a 36 percent increase over the past year. Richards says that, "For bargain-minded investors, the most appealing feature of ETFs is the fact that their expense ratios are usually quite low, which can make them sometimes dramatically cheaper than their mutual fund counterparts." However, she cautions that for those investors who invest or withdraw funds incrementally, "trading fees could eliminate the cost-savings."

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(May '04-Jun '05)