A few years ago everyone was talking about their mutual funds, an excellent financial vehicle when the market is going up and a great way to diversify your stock portfolio using the best minds in the business.
Eventually however, there were 1000s of mutual funds with different specialties; some good, and some not so good.
When the market went south and the Bears came out to play, folks watched their mutual funds get crushed into oblivion.
Of course, in the stock market what goes down must go up too, well eventually.
So, with everyone still sore from the losses of their mutual funds many are looking into some other sort of investment vehicle.
In comes ETFs or Exchange Traded Funds, these are funds that track the market, and if the market is going up and if you choose an ETF in a certain sector, well you can make a killing as the market goes back up again, making most all your money back; well, that's the plan anyway.
Many financial advisers are advising that their clients diversify and have a few ETFs in their portfolio, and this makes investors feel better having been burned with mutual funds in the last stock market crash.
There is a significant difference between mutual funds and ETFs and it is wise for long-term investors and those setting up their retirement portfolios to ask a certified financial planner all about it.
Once you understand and see what this new financial vehicle can do for you, you will be smiling and feel a little safer knowing you are more prudent with your future.
Please think on this.