The hidden perils of ETFs
You can save money and diversify with these cheap index funds, but watch out for the pitfalls.
The fund industry launched 125 ETFs last year, bringing the total to 819.
Danger: Fund companies are throwing a lot of ETF ideas up against the wall -- one tracks companies with lots of valuable patents -- and not all of them will stick. Over 50 funds shut down last year, leaving investors to find a new place for the cash (and possibly owing capital gains taxes). To avoid headaches, stick to established ETFs with assets of $30 million or more.
More galleries
Danger: Fund companies are throwing a lot of ETF ideas up against the wall -- one tracks companies with lots of valuable patents -- and not all of them will stick. Over 50 funds shut down last year, leaving investors to find a new place for the cash (and possibly owing capital gains taxes). To avoid headaches, stick to established ETFs with assets of $30 million or more.
More galleries