ETF investing done right

Money is pouring into exchange-traded funds. They can help your portfolio recover, if you choose the purest kind.

6 of 6
BACKNEXT
5. Make sure you're scoring low costs
ETF Screener
 
 

 
 

Expense ratios for ETFs vary widely. Those that track broad U.S. indexes usually charge less than 0.1% a year, those that follow quantitative strategies run around 0.7%, and leveraged funds go higher still.

So shop around. If a relatively expensive ETF offers the investing approach you want, knock yourself out. Just make sure to keep your overall portfolio's cost down by adding some core index picks. After all, the low-cost advantage is one of the key reasons to buy ETFs in the first place.

More galleries
Last updated June 18 2009: 10:29 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Danger zones: Common threats to your home
Danger zones: Common threats to your home
The 10 most common hidden causes of fire, flood and water damage and what you can do to lessen or eliminate those everyday threats. More
Successful baby-boomer entrepreneurs
Successful baby-boomer entrepreneurs
See how 10 baby-boomer entrepreneurs reignited their careers by going into business for themselves. More
How big is our big deficit?
A contentious debate in D.C. is how to tame the ballooning budget deficit. What measures -- spending cuts, tax hikes -- are needed? Money magazine looks at how we got here and how big our debt really is. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
© 2012 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Ad choices .