Continued from page 1
There are now also options and futures contracts trading on of ETFs. The Chicago Board Options Exchange (CBOE) lists 43 options on ETFs, while
Chicago Mercantile Exchange (CME) offers futures contracts on
S&P 500 Depository Receipts, NASDAQ 100 Tracking Stock, and Russell 2000 Index Fund. And One Chicago, a joint venture between
CBOE, CME, and Chicago Board of Trade (CBOT), offers an electronically traded futures contract on
DIAMONDS Dow Jones Industrial Average ETF.
There are also a number of web sites offering information on Exchange Traded Funds. Check out Amex.com, Yahoo! Finance’s ETF Center, ETFConnect, or ETFera.com. Meanwhile, investment research firm Morningstar compares
fair value estimates to market prices of exchange traded funds holdings to determine whether a fund is over or undervalued.
Exchange Traded Fund’s low costs, liquidity, and diversification make them an excellent alternative to mutual funds, broad based index investments, and individual stocks in niche sectors.

Mark Mahorney is a freelance financial writer. Mark inks The Market Speculator newsletter. You can also read his scrawls, scribbles, rambles, and rants on the markets and whatever other ilk gets his ire at BlogginWallStreet.com and Marketblog.com.