I use Exchange Traded Funds (ETFs) in my fee based investment accounts to construct, manage and monitor an asset allocation portfolio model consistant wth the risk tolerance and goals of my clients.

For more detailed information on the characteristics of ETFs, visit: http://www.ishares.com/material_download.jhtml;jsessionid=5AXC3C1FDAE3YCQGMTMBBGQKAEHQGD50?relativePath=/repository/material/downloads/intro_to_etfs.pdf