We spoke with Lisa Lacy of Ignites about a report written by Celent on the growth of exchange traded funds, "ETFs – All Aboard! Are ETFs Gaining on the Mutual Fund Industry?".  The report shows ETFs growing to $2 trillion by 2010 – that’s 33% growth every year for the next 4 years.  The report says growth is fueled by new products and wide applicability for a diverse group of investors.

ETFs are also appealing due to their relative transparency, you know specifically what you’re buying because the vast majority of ETFs mirror indexes and there are not any surprises as far as buying mutual funds when a fund manager takes a big position in a sector or stock without investors knowing.

Investors want to have more say in what they are buying and are becoming more educated as far as expenses and how funds are allocated.  ETFs are a great tool for these types of investors.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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