.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Dear Mr. Berko:

Dear S.A.:

No. There’s no hook, there’s no catch – it’s straight on, it’s real and it’s not one of those sucker satellite radio money-back-guarantee advertisements that cling to your credit card like a lien.

Yes. You can purchase 26 different ETFs from Fidelity Investments, a subsidiary of Fidelity Management, the huge mutual fund company that manages either more than a trillion or less than a trillion dollars of prominent mutual funds. The 26 various commission-free ETFs are iShares, the portfolios of which are managed by BlackRock Inc., also a formidable money management firm and a spinoff from the iniquitous Blackstone Group (BX-$10.02). BlackRock’s estimable ETFs do a yeoman’s job of covering the landscape. Its ETFs track indexes of stocks of various-sized U.S. companies, foreign stocks, foreign bonds, value stocks, growth stocks, Treasury inflation-protected securities, municipal bonds, corporate bonds and the various Russell and Standard & Poor’s indexes. Check it out on www.Fidelity.com and look for iShares ETFs.

And not to be outdone, Charles Schwab has eight of its own ETFs that you can purchase without paying a penny, pfennig or peso. You can choose from several indexes that track small- or large-cap issues, foreign stocks or emerging market issues. Just let your fingers do the walking at www.Schwab.com.

ETFs are constantly priced during the trading day, just like the shares of thousands of listed company stocks that trade on the exchange. So if the market is crashing or soaring and you want to get in or out during the trading day, an ETF (unlike mutual funds) allows you to do so prior to dramatic price changes.

I also like the convenience of “stop orders” that will automatically buy or sell your shares at a price you specify in advance. You can easily move up or down the trigger points as the market direction changes.

I also like the fact that you can direct a laser-like exposure to a specific industry sector, which is quite difficult to do with sector mutual funds. Sector mutuals tend to focus on broad segments of an industry, which include peripheral issues. And in doing so, too many mutual funds charge huge fees. So ETFs allow you to design your portfolio with surgical precision at a much lower expense ratio.

Meanwhile, many mutual funds are charging some hefty penalties (to discourage trading activity) if you sell their shares within 90 days after purchase.

And finally, if you are bearish on oil, the Mideast, the drug industry, or corporate or municipal bonds, you can’t short a mutual fund, but you can sure as shootin’ short an ETF or write an option on one.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. ©2010 Creators.com