Exchange-traded funds (ETFs) first came on the investing scene in the early 1990s and have exploded in popularity since the mid-2000s. They’re popular for a variety of reasons but chiefly for their versatility and convenience.
ETFs are designed to track various industries or investment strategies and can contain a variety of investments, including stocks, bonds, cash equivalents or commodities. They’re a popular alternative to mutual funds, despite the similarities between the two investment vehicles.
