Exchange Traded Funds are becoming increasing popular, but not all funds are constructed in the same fashion. Options include passive, “market-cap” weighted indexes as well as more tactically oriented ones. Several vendors such as Charles Schwab, Vanguard, and ishares provide a myriad of options. It is best to avoid mixing indexes from one provider with another to avoid overlap. Overall, by using passive index ETFs, you can expose yourself to broad segments of the market in a cost effective way. This Morningstar article provides a good review of the major market indexes. See article.
