Four Q&A on ETFs

Which are the 5 most highly traded Exchange Traded Funds (ETFs) ?

1. The S&P 500-tracking SDPR 500 Trust (SPY)
2. The Nasdaq 100 Trust (QQQQ)
3. The small-cap iShares Russell 2000 (IWM)
4. The Energy Select Sector SPDR (XLE)
5. The Diamonds Trust (DIA), which tracks the Dow Jones Industrial Average, DJIA.

Which are the ETFs for investment in Gold?

[Read our past posting for details on this]

1. StreetTracks Gold Trust (GLD)
2. iShares Comex Gold Trust (IAU)

How many ETFs were launched in 2005?

Total 29 funds were launched on U.S. exchanges so far in 2005. The ETF business raked in $28 billion in fresh cash, according to Morgan Stanley.

Can Mutual Funds invest their money in ETFs?

Mutual funds also use ETF as an investment tool to gain more diversity but they are prohibited from investing more than 5% of assets in a single investment company.