%0 Journal Article %A Todd J. Broms %A Gary L. Gastineau %T The Development of Improved Exchange-Traded Funds (ETFs) in the United States %D 2007 %J ETFs and Indexing %P 16-26 %V 2007 %N 1 %X In their short and dramatically successful history, ETFs have appealed to investors because they offer features not available in other pooled investments. Shareholders buying and selling ETF shares pay the costs of their purchases and sales, in contrast to the mutual fund model where entry and exit is costless to the fund share trader and often very costly to ongoing fund shareholders—an important characteristic behind the market timing scandals of recent years. ETFs also offer tax efficiency, an important feature for taxable investors, which also eliminates the conflict of interest between taxable and non-taxable investors. The authors believe that a new generation of ETFs with less transparent portfolios and a wider range of features can and should preserve these and other shareholder advantages of the original ETFs. %U https://guides.pm-research.com/content/iijetfind/2007/1/16.full.pdf