How to Profit From ETFs

Exchange-traded funds aren’t new, but they’re still red-hot. Here’s a detailed look at why you should consider these investment vehicles, for both your stock and bond allocations.

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Exchange-traded funds have never been hotter. Investors are pouring a record amount of money into ETFs, which hold baskets of securities like mutual funds do but trade like stocks. “It’s just explosive growth,” says Armando Senra, head of iShares America at BlackRock. Nearly as much new money has flowed into ETFs over the first half of 2021 than in all of 2020—which itself was a record year for inflows. “The pace has smashed the prior record to smithereens,” says Ben Johnson, director of global exchange-traded fund research for Morningstar.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.