Exchange-traded funds (ETFs) have a strong foothold in the marketplace, because they are less volatile than individual stocks, cheaper than most mutual funds and subject to minimal taxation. But how do you use this financial product to diversify your investments in today's fast-growing and ever-changing market? Exchange-Traded Funds For Dummies shows you in plain English how to weigh your options and pick the exchange-traded fund that's right for you. It tells you everything you need to know about building a lean, mean portfolio and optimizing your profits. Plus, this updated edition covers all of the newest ETF products, providers and strategies, as well as Commodity ETFs, Style ETFs, Country ETFs and Inverse ETFs. * Create the stock (equity) side of your portfolio * Handle risk control, diversification and modern portfolio theory * Manage small, large, sector and international investments * Add bonds, REITs, and other ETFs * Invest smartly in precious metals * Work non-ETFs into your investment mix * Revamp your portfolio to fit life changes * Fund your retirement years Plus, you'll get answers to commonly asked questions about ETFs and advice on how to avoid mistakes that many investors—even the experienced ones—make. It provides forecasts of the future for ETFs and personal spending and also provides a complete list of ETFs and Web resources to assist your investment. With Exchange-Traded Funds For Dummies, you'll soon discover what makes ETFs the hottest investment on the market.