Mutual Funds -- Exchange-Traded Funds

Exchange-traded funds, one of the hottest investment trends of the year, are essentially mutual funds that trade like stocks.

As with a typical mutual fund, investors can purchase ETFs and get the equivalent of a portfolio of stocks through a single investment. Also, like typical mutual funds, there isn't a fixed number of ETF shares to be purchased.

However, investors can buy and sell shares of exchange-traded securities throughout each trading day -- just like stocks -- paying typical brokerage commissions. ...