Assets flowing into exchange traded funds (ETFs) that target certain market sectors illustrates that more and more investors are getting hip to their benefits and realizing the positive role they can serve in their portfolios.
ETFs are designed to mimic the index that they track, which also gives investors the flexibility to invest by single country or region, not just a particular industry. ETFs are also bought and sold throughout the day, so they have the ease of a single stock rather than closing once at the end of the trading day.
As a result, some trends have been presenting themselves in certain areas as investors learn about these tools.
More emerging market investors are shifting from actively managed mutual funds and putting their capital into ETFs, which have doubled their market share over the past year. Veronica Navarro Espinosa for The Washington Post reports that the number of available funds from this category have risen from 99 to 111, according to Credit Suisse facts.