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Exchange-Traded Fund

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.

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Coca-Cola Downgraded To Hold At Deutsche Bank

 
Simon Kennedy
MarketWatch Pulse
 

LONDON -- Deutsche Bank downgraded Coca-Cola Co. to hold from buy, saying the company faces slower volumes at home and abroad as well as currency headwinds. The broker said it expects Coca-Cola to flag a tougher trading environment in the fourth quarter. It also questioned whether any U.S. bottlers or brand owners will benefit in the short-term by the likely 7% to 9% price increases indicated going into 2009. "Normally, following a year of disappointing volume growth, pricing is examined with a view towards volume improvement," Deutsche Bank said.

Copyright © 2008 MarketWatch, Inc.

 
 

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