PT - JOURNAL ARTICLE AU - Brad Zigler AU - Brad Pope TI - Exchange-Traded Funds DP - 2001 Sep 21 TA - ETFs and Indexing PG - 42--49 VI - 2001 IP - 1 4099 - http://guides.pm-research.com/content/2001/1/42.short 4100 - http://guides.pm-research.com/content/2001/1/42.full AB - A burgeoning of exchange-traded funds (ETFs) over the past year has given institutional investors a much deeper roster of index exposures from which to draw upon when engaging in portfolio management, enhancement, and hedging strategies. Portfolio managers and plan sponsors, long used to the employment of index futures or program trades, have been compelled to look anew at the relative costs of their strategies in comparison to these new market entrants. Recent research, in fact, indicates that ETFs can be more cost-effective than futures, especially if long-term index exposure is sought. Many studies produced by sellside firms point to the advantages of ETFs over futures. While these reports chalk up several “pluses” on the ETF side of the ledger, there are enough “minuses” extant to warrant careful examination before choosing the most appropriate vehicle for executing index-related portfolio strategies.