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Hedge-fund managers, for instance, have the ability to "go short" (bet on their prices to fall), something that ETF funds cannot do.
In May, Vanguard itself filed with the SECto offer five new ETF funds, including a version of its Total Stock Market Index Fund.
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But, as Matthew Frankel points out in his Fool.com article describing the difference between stocks, mutual Funds, and ETFs, stock funds can generate massive returns.
Other tools show when IShares trade at a premium or discount to underlying shares, and they compare ETF fund returns to straight index returns.
Likewise, you could theoretically create your own international ETF fund composed of 40% in Turkey, 35% in Malaysia, 15% in Sweden and 10% in Belgium, but that would look a bit strange too.
listed ETFs: Funds invested into them nearly tripled, from $9 billion to $24 billion, and 119 new ETFs were launched in the same period.
In Pictures: Eight ETFs And Funds For 2009.
Investors should choose carefully since fund firms are likely to recommend their own ETFs and funds.
On the international front, we like the BIC countries (Brazil, India and China) and would invest in a broad-based ETF or fund.
The best way to minimize them is to buy ETFs, index funds or others with low turnover ratios.
This doesn't have to be cash — it can be stocks, ETFs, mutual funds, options, or other assets.
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