Exchange Trade Funds give investors new tool

People want to make their money work for them ? and with exchange trade funds being the newest fad in financial management, investors are hoping that their cash will work overtime.

Exchange Trade Funds are collections of assets set aside by investors that track an index or sector for the market, said J. Patrick Collins, a principal with Towson-based Greenspring Wealth Management Inc. Even more simply, it means that a fund manager has a pot. In this pot he gets other investors to put in stocks, bonds or other related commodities. The fund manager likes it because he gets a management fee, the investors like it because they receive an interest fee, and because they make a profit on the difference of what they purchased a share of the pot for.