What Types of ETFs Are Best for You?
Exchange-traded funds have revolutionized the investing industry by making it easier than ever for investors to get exposure to the widest possible range of investments. With thousands of ETFs available, it can be very challenging for investors to figure out which types of ETFs are the best for their portfolios. The following types of ETFs are the most common, and you'll likely find the funds you're looking for within these categories:
The biggest and most popular ETFs are broad-market ETFs. They track indexes that cover all or a large part of the stock market. The best example is the SPDR S&P 500 (NYSEMKT: SPY), which is the largest ETF and tracks the S&P 500 index of U.S. stocks.
You can find broad-market ETFs that cover a variety of different indexes. Some broad-market ETFs offer exposure to the entire global stock market, while focusing on a particular size of company or geographic region. The cheapest broad-market ETFs are among the least expensive investments available, and they work well as a one-stop solution for asset allocation.
Source: Fool.com
