ETF Mutual Fund, ETF Mutual Funds

By: EconomyWatch   Date: 3 August 2009

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EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

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ETF mutual funds invest in various exchange traded funds (ETFs). These funds are becoming increasingly popular, as reflected by their daily trading volume of more than 95 million shares. The reason for their increasing popularity is that they offer most of the benefits of mutual funds and ETFs. Some of the distinguishing features of ETF mutual funds are:

  • Each unit holder receives a share of the several companies purchased by the ETF mutual funds manager.

  • Similar to stocks and ETFs, they are traded many times throughout the day.

 

From just 20 ETF mutual funds being traded in the mid 1990s, the number spiraled to 300 in a little over a decade. These ETF mutual funds handle more than $250 billion worth of assets.

 

Several ETF mutual funds are designed to react to market movements, as a result of which their ETF holdings change continuously. The benefit of ETF mutual funds is their professional management.

 

Disadvantages of ETF Mutual Funds

The disadvantages of ETF mutual funds are:

  • The tax advantages and trading flexibility of owning ETFs are completely lost.

  • Expense ratios are not as low as ETFs due to the addition of an extra layer of management fees.

 

Popular ETF Mutual Funds

AdvisorOne Amerigo Fund: Trading under the ticker symbol CLSAX, this ETF mutual fund has substantial exposure to international investments. The top ten holdings of this fund are:

  • iShares MSCI Emerging Mkts

  • iShares Russell Midcap Growth

  • iShares Russell 1000 Value

  • NASDAQ 100 Trust Shares

  • iShares MSCI EAFE (EFA)

  • Vanguard Mid Cap VIPERs

  • Consumer Staples Select Sector SPDR

  • iShares Dow Jones Trannies

  • SPDRs

  • Vanguard Value VIPERs

 

ETF Market Opportunity Fund: Trading under the trading symbol ETFOX, this ETF mutual fund was launched in early 2004 and delivered annual returns that have exceeded the returns generated by the S&P 500 by more than 3% since its inception. The fund features:

  • PowerShares QQQ

  • iShares Russell 1000 Growth Index

  • Vanguard Growth

  • Vanguard Small Cap

  • iShares G.S. Semiconductor

  • Vanguard Info. Tech.

  • Vanguard Value

  • iShares Dow Energy

  • Vanguard Small Cap Growth

  • Ultra Russell 2000 Proshares

 

 


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Most Popular in Exchange Traded Funds

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