The current market can not only confuse investors, they can lead to major anxiety, so why not an exchange traded fund (ETF) to help quell these feelings?
It appears that the credit crisis has now penetrated the money market funds, thanks to the the ripple effect. Some money market managers are known to absorb some of the losses to keep share value above $1.00 per share, but that may be quite hard to do in this market of capital loss. Some funds have “broken the buck,” as it’s known on Wall Street.
ETFs give you full transparency, so that you always know exactly what you own.
The Federal Reserve did say last week that it would insure money market funds with up to $50 billion from the Treasury’s Exchange Stabilization Fund, reports Sue Asci for Investment News.
