A whopping $1.2 trillion have been invested in U.S. assets through ETFs. An ETF is traded same as a stock of a company. They are an easy way to own whole markets such as commodities or bonds or segments such as health care or financial. Index based funds require only minimal involvement of your time or the management. ETFs are a low cost alternative due to minimal “active” management involvement, provide tax efficiency based on low capital gains, provide same flexibility as buying a stock, provide much needed diversification of assets, and provide maximum transparency.

There are approximately 1,400 ETF products available for your selection. The explosive growth of this segment of the market has resulted in another 900 ETFs waiting on the wings. An ETF could be simple as Standard & Poor’s 500 Index ETF or more complex due to mixing of various securities and require “active” management.

There are several index based ETFs which represent the underlying securities or similar assets. There are bond ETFs that invest in government treasury bonds or private company issuance. There are commodity based ETFs that invest in precious metals or futures. Also available for your consideration is currency based ETFs.