Starting to buy Exchange Traded Funds (ETFs) sounds scary but its not. Anyone interested in this lucrative market who knows how to buy stocks can just as easily purchases ETFs.
First rule is to make buying ETFs as inexpensive as possible by using firms that give you access to a wide range of ETFs for, well, free. Yes, free. Thanks to all the competition of ETFs, you can now buy them without having to pay commission.
The major advantage of ETFs appears to be the fact that you are not buying into just one company, but a sector with many companies. Never a good idea to put all your eggs in one basket so ETFs are advantageous for that reason. Moreover, you can invest in areas such as precious metals or foreign exchange to attain even greater portfolio diversity.
ETFs are easy to use which explains their continuing popularity and why I buy ETFs on a monthly, ongoing basis and perhaps, you should add ETFs to your portfolio as well.