2 Index ETFs to Buy Hand Over Fist and 1 to Avoid
The temptation to chase the performance of the market's hottest stocks is strong to be sure. Everyone else seems to be getting rich off of them. Why not you?
As veteran investors can attest, however, the proverbial grass isn't always greener on the other side of the fence. A simpler, more passive approach often ends up being a more rewarding one.
Enter exchange-traded funds, and specifically, index-based exchange-traded funds -- or ETFs -- like the SPDR S 500 ETF Trust (NYSEMKT: SPY). Such funds are designed to help you sidestep the risks of individual stocks by allowing you to easily own a diversified basket of equities with at least one common attribute. In the case of the SPDR S 500 ETF, the common attribute is the fact that all of the stocks are constituents of the S 500 index.
Source Fool.com
