Exchange Traded Funds
Radio Transcript, 60 seconds, for use during week
of Dec. 10.
This is an Invest Wisely minute brought to you by Iowa State University Extension.
You may want to consider ETFs... or Exchange Traded Funds...
as an investment. They are the fastest growing segment of the
They are similar to mutual funds in that they hold a basket
of securities such as stocks, bonds, currencies and commodities. However,
unlike mutual funds, you can trade ETFs throughout the day like
The expenses of ETFs are on average even lower than that of
index mutual funds. They also are tax efficient.
The biggest drawback is the brokerage commission you pay each
time you buy or sell an exchange traded fund. Thus, they
are less appropriate for the investor who dollar cost averages
by regularly putting a smaller amount into an investment.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.