How to choose your ETF fund

Exchange-traded funds (ETFs) are closed-end investments purchased on an Exchange. They are passively managed funds which mirror the performance of specific indices by tracking the performance of the individual stocks that comprise each index. The major advantages of ETFs are (1) low cost structure, (2) tax efficiency and (3) ability to be traded throughout the day. Yet, an even greater advantage is the ability to buy and sell options on many ETFs, which offers investors the flexibility to execute more sophisticated trading strategies that transcend simple ownership of the ETFs.