ETF Education for the Week of January 12, 2009. Indexes, Indices- their roles in ETF construction and performance By: Rick Walter Maduro, UCS Investment Co . Description : Our weekly ETF review is an education blog for investors to learn about ETF funds; how to buy or trade them; when to buy or trade them and more. ETFs are a great way to add broad based diversification and liquidity to an otherwise static portfolio and a great way to add stability to your portfolio for the long-term. Picking up where we left off- our last post was 2/23/2008 . Our last topic was Benchmarks . Our next topic is indexes, or indices . An index (a composite figure like the Dow Jones Industrial Average) becomes a benchmark index when you choose it as the standard against which to measure your own portfolio’s performance over time. Indexes provide transparency to your portfolio. You need transparency in these markets. Again the key to ETFs’ success is the broad based exposure you receive, their ability to t
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