Exchange Traded Funds

Those of you who are already familiar with ETFs may wish to skip to the last few paragraphs for the investing comments. We begin with an explanation for those who are less familiar.

The first Exchange Traded Fund was created in 1993 by the Standard and Poor’s Deposit Receipt (SPDR, pronounced “Spider”). SPDRs gave investors an easy way to track the S&P 500 without buying an index fund, and they quickly grew in popularity.

An ETF tracks an index, but can be traded like a stock. ETFs bundle together the securities that are in an index and don

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