Jul
26
ETFs for the Conservative Investor
Investment in exchange-traded funds (ETFs) has grown substantially since the first ETF was introduced in 1993. Total ETF assets exceeded $1 trillion in March 2011, up more than $200 million over the previous year.1
Until recently, conservative investors may have felt left out of the ETF marketplace because the available options were largely based on stocks. That is changing. There are now 140 bond-based ETFs with assets representing about 14% of the total ETF market.2 Bond ETFs generally track major fixed-income indexes that might focus on short-term, intermediate-term, or long-term bonds. They offer some appealing opportunities for the risk-averse.
Mutual Funds Meet Stocks
Like mutual funds, ETFs comprise a portfolio of securities assembled by an investment company.
Until recently, conservative investors may have felt left out of the ETF marketplace because the available options were largely based on stocks. That is changing. There are now 140 bond-based ETFs with assets representing about 14% of the total ETF market.2 Bond ETFs generally track major fixed-income indexes that might focus on short-term, intermediate-term, or long-term bonds. They offer some appealing opportunities for the risk-averse.
Mutual Funds Meet Stocks
Like mutual funds, ETFs comprise a portfolio of securities assembled by an investment company.
