When you work at an exchanged traded fund provider, it’s easy to forget that many investors still aren’t convinced of the benefits of ETFs and many don’t even know what an ETF is. 

That’s why as 2011 draws to a close, I decided to take a step back and devote a post to pointing out some helpful online resources for investors who are just getting started with ETFs or who want to learn more about ETF basics.

For starters, check out the “Exploring ETFs” interactive guide (found on the bottom right of this iShares.com page). It is particularly worth exploring if you haven’t yet hopped aboard the ETF train or if you’re still a wary rider. 

I like this guide because it uses fun images (sushi bento box, anyone?) and sound effects to explain the benefits and structure of ETFs. The next time you have five minutes to spare, you may want to consider spending some time playing around with the guide. You’ll learn why key benefits of ETFs include access to diversification, transparency, lower costs and tax efficiency (the bento box is used to show diversification, if you’re curious).

With the help of marbles, you’ll also learn about the unique structure of ETFs and about the creation and redemption process behind how ETF shares get created. As an added bonus: The guide also provides information on index investing and some ETF portfolio strategies to consider.

Once you’ve mastered this guide, consider checking out the 7-minute interactive introduction to ETFs found on the bottom right of this iShares.com page or watch this animated video on creation and redemption.

Diversification may not protect against market risk. Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. ETFs are obliged to distribute portfolio gains to shareholders.