Tuesday, April 9, 2013

Exchange-traded funds gain on traditional mutual funds.




In the early 1990s, executives of the now-defunct American Stock Exchange hatched a revolutionary idea: a hybrid mutual fund-type investment that would trade like a stock.  But in an era when hot-handed mutual fund managers had rock-star status, the concept of the “exchange-traded fund,” or ETF — low-cost, pre-programmed portfolios designed to simply replicate a broad or narrow swath of the market — didn't get a lot of people's hearts pounding.

Twenty years later, however, exchange-traded funds have ballooned into a $1.4-trillion industry in the U.S. and $2 trillion worldwide. Asset growth has surged since 2007 as the number of ETFs has soared past 1,400, covering every corner of stock, bond and commodity markets…..

Read all about it at http://articles.latimes.com/2013/apr/05/business/la-fi-mfq-etf-mutual-funds-20130407

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