Exchange traded funds or tracker funds are funds that represent an underlying basket. This basket can contain almost anything from indices to commodities.
ETFs are a good investment vehicle because it is very hard to outperform an index. You can see this by the fact that monkeys do a good job at this compared to pros. You can still strategise with these funds because you can decide which index or commodity to track.
Benjamin Graham supports investing in indices. It is a good way to invest especially for beginners. Some of these funds also have a very low cost. It is also easy to diversify with ETFs by bying a broad index ETF or buying multiple ETFs.
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