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If you’re tired of prepayment charges, and increasing management fees of mutual funds over poor fund managers scene, read on. There is a quiet revolution happening in the industry no load mutual funds and you, the individual investor, may benefit greatly. I am referring to Exchange Traded Funds (ETF), which have been around for years, but they have grown tremendously since their inception. There are currently over 100 choices with around $ 10 billion in assets. In a nutshell, an ETF is a specific type of lack of mutual funds charge you may choose to be a basket of shares. ETFs are diversified like mutual funds, only they trade like stocks. They are cheap to trade (as low as $ 8. 00) and donations?? T hit you with any short term redemption fee. And they offer investment opportunities in all areas. ETFs track every index under the sun including the S & P 500, Nasdaq 100, the Russell 2000 and many others. Available through any discount broker, they essentially fall into three categories: broad-based U.S. indexes, sectors and international. The have esoteric names such as iShares, Streettracks, Holdrs and SPYDRs. The difference is in the index they are tracking and marketing company. You will see big name companies offering them, as the American Stock Exchange, Barclaya?? S Global Investors, Vanguard and State Street Global Investors. In my newsletter I track FNB currently most appropriate for you to consider. For more information you can visit these websites: www. NASDAQ. com www. Amex. com www. iShares. com In addition to inexpensive trades and no redemption fee for short term, how else can save you money vs. no ETF mutual funds charge? A solution is in their annual management fee. That fee for ETFs is in the 0. 45% vs 1. 5% on average for no load mutual funds. The fees charged by discount brokers are so low they can hardly be disregarded, usually less than 0. 1% of the transaction. For example, I have used ETFs for some managed account clients during my last buying cycle, which began on 4/29/03 and paid $ 27 for a $ 28,000 order â?? and it was not even the cheapest discount broker. So, if these ETFs are so great, why hasna?? T your broker or financial planner recommended them for you? Easy! Brokers, advisers and those working on commissions, donations?? T make money on ETFs; no commissions on the front or hidden at the rear. It is simply not in their interest to promote. With all the positives for the investor, there is a disadvantage, which may not be applicable unless you are a hot shot no mutual funds charge Picker. Because in any given economic environment really super mutual fund may outperform the indexes, but an ETF can never exceed the index itâ?? S attached to. You would need to watch your own investment record to know whether this is a problem for you. Liena?? SA real example from my consulting practice. My trend indicator monitoring has reported a Buy on 4/29/03. Based on the indicators that I start I chose 5 no load funds, mutual funds and 4 ETFs. Over the next 3 months my ETFs gained from 10. 02% to 22. 36%, while my no load mutual funds derived from 9. 15% to 36. 35%. If youâ?? Happy Re enough to make a selection above, you beat an ETF. Of course, this assumes you’ve chosen a very effective fund versus an ETF only limited success. A word of caution! Just because ETFs are cheap and easy to buy doesn?? T mean they will guarantee a profit. You can lose money with them just as easily as you do not load with mutual funds. You should always make sure to have a rigorous methodology in place to help you enter and exit the market. If you nâ?? T, youâ?? Re game, no matter what you put in. Having received notice of the road, we hope these insights into ETFs will broaden your perspective on how you can succeed in your investments.