Exchange Traded Funds are a recent development in investing and are revolutionizing many aspects of the investor's portfolio. ETFs offer the ability to invest in a wide variety of assets, but trade the fund like a stock on an exchange. This allows investors to do things like invest in gold or the Dow Jones Industrials Index, without having to move money into a mutual fund or other instrument. This provides an amazing amount of liquidity. While these developments can help the average investor, it is important to make sure you understand how ETFs work in general and how the particular ETF