The exchange traded fund (ETF) has taken the investment world by storm. With the recent invention of such ETFs like the HealthShares Family, it is evident that providers are thinking of everything and anything to invest in. Rob Wherry of SmartMoney.com remembers it used to be that evaluating a decent ETF came down to simply pulling back the curtain on its underlying benchmark, usually the S&P or something from Russell. This is not the case anymore with more companies trying to distinguish their product, resorting to new products that center around an unproven index.
As more indexes are created and more ETFs that follow them, it becomes that much more important for investors to know what, and how much of it, the ETF is holding. As always, do the research on an ETF before adding it to your portfolio.
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.