ETFs' arrival sparks myths and legends

Much has been written about the arrival of exchange traded funds (ETFs) in Europe, with most of the commentary suggesting that ETFs are a superior alternative to index- tracking funds. I would suggest that promoting one form of indexing over the other is too simplistic, and believe that each may have its place in an investor's portfolio. Since ETFs are traded on an exchange, their most attractive feature is the ability to be bought or sold at any time during the trading day. ETFs have made broadly diversified investments that offer an exceptionally high degree of liquidity available to ...