Here’s how ETFs became one of Wall Street’s hottest investment products

Traders New York Stock Exchange NYSEREUTERS/Lucas Jackson

  • Exchange-traded funds have become wildly popular in the past decade, and account for a quarter of all trading activity on exchanges.
  • We spoke to two experts, a 15-year veteran of the product and a hedge fund founder, about how ETFs can help investors balance their portfolios. 

You’ve probably heard the term ETF by now, but may not be sure what it actually means.

Short for exchange-traded fund, ETFs have taken financial markets by storm over the past decade by packaging multiple individual equities into a single, indexed security that can be traded just like a stock. In just one trade, an investor can buy equity in a whole basket of individual securities, and — hopefully — receive the same rate of return as if they had bought them individually. 

See the rest of the story at Business Insider

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Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of and Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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