Wednesday, November 30, 2005

Real News: NYX to GAIN ETF Market Share!!

Where's Lucchetti today? How 'bout an article about NYX growing its ETF market share? Click here for a quick note on this exciting development. ETFs are getting huge. Their assets are growing at incredible rates. In fact, according to a WSJ article on 10/04/2005, ETF assets stand at $251.5 billion, having increased $100 billion over the past year and a half!

Consider that mutual funds, the investment of the 80s, have approximately $8.5 trillion in assets. When wealth is transferred to the next generation, ETFs will be ubiquitious. Perhaps more popular than mutual funds are today.

The advantages of ETFs over mutual funds are vast. In fact, the only potential downside of an ETF instead of a mutual fund, is for investors that set up dollar-cost-averaging programs that can create trading commissions that erode ETF profits -- the solution to this? Find a broker who can sell you a wrap account. Own ETFs in the wrap account, and the trades are done commission-free.

Another nice thing about ETFs over mutual funds are the capital gains tax treatments. In a mutual fund, owners are on the hook to pay capital gains tax on shares sold by the fund to honor a redemptions (read: sale of mutual fund). ETFs have no such penalty. They're tax efficient, have incredibly low cost ratios, and will likely be the mutual fund of the future.

All this is just part of an incredible transformation of Wall Street. And, NYX is positioned to be the leading bourse in the universe. AX is effectively a Porshe engine in a 1939 Cadillac.

Fill 'er up, we've got a long way to go!


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