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In the wide and varied family of the thousands and thousands of funds out there, the exchange-traded fund is one of the more consumer-friendly ones.
Unlike mutual funds, exchange-traded funds, or ETFs, behave more like stocks. You can buy
into an ETF at any time, and sell it whenever you feel like it. And like a stock, an ETF's value can rise and fall--depending
on what the ETF is invested in.What do ETFs invest in? Well, they're typically linked to an index like the Dow Jones Industrial
Average or the S&P 500. So, if you had an ETF that trades the same companies that make up the Dow or the S&P, it will
rise and fall in value pretty much the same amount as the Dow or S&P.
You can also buy ETFs that invest in other
types of products, like bonds, currencies, gold or other commodities. The ETF market has grown considerably in the past few
years, so there is no shortage of ETFs to invest in.
Connell McShane
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Connell McShane
Connell McShane joined FOX Business Network as a correspondent in September 2007.
Prior to joining FBN, McShane worked at Bloomberg Television where he served as a news reporter and an anchor working on Evening Edition, On the Markets and Marketweek. He also broadcasted live reports from both the New York Stock Exchange and NASDAQ. Before Bloomberg Television, McShane co-anchored the syndicated morning show The First Word on Bloomberg Radio.
During his career, McShane has covered the Iraq invasion, the capture of Saddam Hussein, the 2004 presidential election and the aftermath of the 9/11 terrorist attacks.
A graduate of Fordham University with a Bachelor of Arts degree in Communication and Media Studies, McShane was named a finalist in both the New York Metro Achievement in Radio Awards and the New York State Associated Press Broadcasters' Association.
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