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Use the Index

The scoop on fully tradable ETFs

This story appears in the February 2002 issue of Entrepreneur. Subscribe »

If you're a fan of both index mutual funds and individual stocks, exchange traded funds (ETFs) offer a combo worth investigating.

First introduced in the early 1990s, ETFs became popular because they're essentially baskets of securities (like mutual funds are) that are listed on the American Stock Exchange. Because mutual funds aren't listed on the exchanges, you can't trade them all day as you can ETFs.

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