Summary
NEW YORK - Equity index funds are usually associated with the most passive form of investing: Buy one and you get quick, easy exposure to a broad swath of the market. But with the rise of specialized exchange traded funds, indexes are being used more often by active investors in increasingly complicated strategies.
With ETFs, which track indexes and are traded like stocks, investors can get inexpensive, tax efficient sector exposure while tilting their portfolio wherever it suits them. You could build your own version of the Standard & Poor's 500 with Sector SPDRs - which divide the index's nine sectors into ETFs - buying as much or as little of each sector as you like. If you don't want to limit yourself to the S&P 500, you could buy the closely correlated Dow Jones U.S. sector indexes, which hold many more companies.See the full content of this document
Extract
Etfs Can Give Your Portfolio a Tilt
"This combines the benefits of index investing with a truly customizable approach to investing your money," said Dan Dolan, director of wealth management strategies for Sector SPDRs. "You know exact...
See the full content of this document
Sponsored links
