ETFs stands for Exchange Traded Funds. An ETF is registered with the SEC as an investment company, and it shares trade on a stock exchange intraday like any other public company. The ETFs are like mutual funds, however, in that their assets consist of a basket of stocks deposited by institutional investors.

If you want to invest in the market quickly and cheaply, ETFs are the most practical vehicle. They help the investor focus on what is most important, choice of asset classes.

There are ETFs for large US companies, small ones, real estate investment trusts, international stocks, bonds, and even gold. Pick an asset class that is publicly available and there is a good bet that it is represented by an ETF or will be soon.

An ETF has the disadvantage that you pay broker's fees; it may have tax advantages. But the greatest advantage may be convenience: if you already have a brokerage account then you are ready to buy shares of an ETF, using its symbol, the same way you would buy shares of a stock.