Strategy-based ETFs help provide exposure to the styles and theories active managers utilize, which helps remove the emotions that may be associated with investing. Each investment style provides an investor with a more targeted exposure to the markets.
It should be noted strategy-based ETFs tend to have higher than average expense ratios, but they still cost less than actively managed stock funds.
SPDR S&P Dividend ETF (NYSEArca: SDY)
For more information on ETF indices, visit our indexing category.
Max Chen contributed to this article.