ETFS: NOT SO SIMPLE ANYMORE: NEW FUNDS COME WITH TAX HEADACHES, TRACKING ERRORS AND OTHER OBSTACLES

摘要

THERE'S NO DOUBT THAT exchange-traded funds have captured investors' imaginations. The funds, which trade like stocks, represent baskets of securities or commodities. Since 1999, assets have grown at a compound annual rate of 36%. As investors fled mutual funds last year, ETFs garnered net sales of $182 billion. An ETF offers instant diversification, representing a swath of the market in a single security. You can trade an ETF at any time, and its underlying assets are disclosed daily.