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Don't be tempted to burn your portfolio with exchange-traded funds

Written by Tim Decker, AIF®. Posted in Central Penn Business Journal

One of the more striking developments in investment products in the past decade has been an explosion in the use of ETFs—exchange-traded funds.

According to Morningstar, assets in ETFs have grown to more than $2.1 trillion. About 1,400 different ETFs now exist.

Some ETFs are similar to generic index mutual funds, as they are passively managed. They track an index, like the S&P 500, to capture the returns of that index, minus expenses and trading costs. Like some no-load index funds, these ETFs can have expenses that are quite low.

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