Money Magazine has another impressive article: Perfect Your Portfolio takes a look at Exchange-Traded Funds (ETFs).
ETFs are good for lump sum investing in a particular sector, and the article suggests targeting sectors that have poor recent performance with the idea that they will revert to the mean, providing a decent increase.
ETFs are bad for periodic smaller investments due to the trading fee you have to pay your broker each time you invest.
I have less than $100 in an ETF at the moment. I am invested in a telecommunications sector ETF from iShares, IYZ, in a ShareBuilder [aff. link] account.
Updated September 2, 2011 and originally published October 20, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.