FAQ

What are exchange-traded funds (ETFs)?

Exchange-traded funds are similar to mutual funds, but they trade on an exchange throughout the day, like a stock. So far, they are all index funds—that is, they simply mimic an index of stocks, bonds, or other securities rather than rely on an active manager to choose their holdings. Because they are traded on an exchange, investors can buy or sell them at a wide range of prices and times, unlike traditional mutual funds, which are only priced and traded once per day at the market close.

Who is Tim Middleton?

Tim Middleton is a professional financial journalist who has been studying and writing about ETFs for years. In 2003, he created a model portfolio of ETFs for MSN Money, and it has since generated a market-beating return of 12.6% annually versus 10.5% for the S&P 500 (as of November 30, 2007).

What is ETF Insider?

ETF Insider is a new, information-packed newsletter dedicated to providing ETF investors with unique insights into the ETF market, market-beating investment recommendations, and a long-term discipline that will continue to compound their returns for years to come. Rather than simply relying on the standard fare, Tim Middleton's tactical asset allocation approach makes strategic use of ETFs that are overlooked by most investors to boost returns and lower risk.

Whare are the advantages of ETFs?

Because ETFs are traded throughout the day on the open market, investors don't have to go to the mutual fund company to buy shares, and mutual fund companies don't have to spend as much time on servicing the funds. This provides the dual advantage of greater liquidity and lower costs for investors. In addition, because ETFs track indices, they have greater transparency than traditional mutual funds, whose holdings are not publicized until required by law—often months after transactions have been made. Finally, ETFs target entire asset classes, which makes creating a low-cost, diversified portfolio for a variety of market-beating strategies simpler than ever.