Some people prefer investments with opportunities for rapid growth and don't mind risk. Others prefer investments that grow more slowly, with less risk. There are several broad categories to help you think about how you can use ETFs.
Tracks the performance of a group of stocks, measured in a single index.
Provides exposure to a universe of bonds, also known as fixed-income investments.
Sector and industry ETF
Provides exposure to a specific area like technology or telecommunications.
Smart Beta ETF
Uses a non-traditional approach to index construction versus cap-weighted strategies.
Buys assets that follow a certain set of rules, like the fastest-growing stocks in an industry.
Invests in non-U.S. markets, including stocks, bonds, commodities, or a mix.
Focuses on markets or individual stocks or bonds that are likely to fall in price.
Invests in nontraditional areas, like natural resources, real estate, hedge fund replication, and merger arbitrage.
It's always useful to learn a little more. Take a look at these helpful links.