How ETFs allow you to dabble in the housing sector without a hefty investment

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If you want to track a specific index — like the housing sector — you may want to consider purchasing an ETF or “exchange-traded fund,” which is an investment product that’s a bundle of bonds, stocks or other assets, similar to a mutual fund.

According to Auerbach, an advantage of ETFs — compared to mutual funds — is that they are publicly traded during"An investor doesn't know what his mutual fund is worth until the end of the day when the fund's ‘value’ is posted online, while ETFs have a constant bid/ask spread and trade like a stock," he explained.ETFs are bundled so you can own real estate sector stocks

"As a reference point, there are 30 REITs in the S&P 500 currently," he said. "Any investor can throw a dart against the board and pick their favorites." The advantage for investors, said Auerbach, is that an ETF wrapper gives an investor the opportunity to play 25, 100, 250, 500 stocks in one "stock" and thus only have to pay potential capital gains/losses on one security.

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