ETFs can diversify risks if invested professionally
March 10, 2010
Exchange Traded Funds (ETFs) are emerging as an attractive investment option, especially after the onset of the global financial crisis, believe analysts.
ETFs are, basically, traded on a secondary market just like stocks but they track the underlying index. An ETF's main aim is to achieve the same return as a particular benchmark or market index.
Today, ETFs are available in a wide form. They can be denominated in various currencies such as sterling or dollar; could be any country focused such as ETFs on China, India, emerging markets or Latin America; or any sector focused such as oil and gas, agriculture, basic resources or alternative energy.