Twelve Things You Need to Know About ETFs

By Ben Steverman - 2012-02-27T22:16:37Z

Illustration by Dennis Pacheco

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Why are ETFs so popular?

Investment advisers like ETFs for their low expense and ease of trading -- ETFs trade throughout the day, like stocks. They can give exposure to a wide variety of asset classes or sectors, including assets such as currencies and commodities that can be difficult for individual investors to access. Because almost all ETFs are based on indexes, they're diversified without relying on the personal judgment of a manager who too often ends up being wrong, says Frank Armstrong, chief executive officer of advisory firm Investor Solutions.

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