A new survey of active traders finds that the majority trade exchange traded funds.

The latest Charles Schwab Active Trader Sentiment Survey finds that 54 percent of traders trade ETFs.

Of those who trade ETFs, half (50 percent) are primarily using sector or specialty ETFs, 38 percent are primarily using index ETFs and only 12 percent are favoring exotic or leveraged ETF products.

Active traders find that ETFs are an easy, cost-effective way to gain exposure to sector, industry or market trends while helping reduce the company-specific risks associated with buying individual stocks.

The same survey also finds that 40 percent of those surveyed report they are trading options. An overwhelming majority (74 percent) of those who trade options say they are doing so primarily for potential income generation or risk management as opposed to pure speculation.