Investors have welcomed the “new” investment class, which generally offers more trading flexibility and lower expense ratios than comparable mutual funds. The first ETFs began trading on the American Stock Exchange in 1993,
An exchange-traded fund is an investment company with shares that trade intraday on stock exchanges at market-determined prices, as do stocks.
However, at year-end 2000, total ETF assets were a mere fraction of the $6.9 trillion invested in mutual funds.
At 12/31 there were 80 ETFs trading on U.S. stock exchanges, up from 30 at the beginning of the year.
Fifty-five ETFs totaling $63.5 billion tracked domestic stock indexes. Twenty-eight used broad indexes, while 27 targeted industry or sector indexes.
Twenty-five ETFs were classified as Global/International
The Investment Company Institute offers frequently asked
questions about ETFs at