ETF’s (Exchange Traded Funds) offer all the benefits of mutual funds at lower costs
ETF’s are cheaper than mutual funds, even with the exposure to the same stocks. They have lower management fees and there are no hidden “front-load” or “back-load” sales charges. If your financial advisor is not a fiduciary, there is a possibility you have been paying excess fees for the exact same stock exposure.
ETF’s are more tax-efficient and save you money on your taxes. For a more detailed discussion of tax nuisances, checkout our education article.
ETF’s are more transparent then mutual funds. There is no Wall Street obscurity in ETF’s, and their public holdings are posted more regularly then mutual funds.
ETF’s trade during the day like stocks, so they can be sold or bought instantaneously.
ETF’s can target specific industries and sectors, so investors can get exposure to specific areas they think will grow over time (blockchain technology, virtual reality, “smart homes”, gene editing, etc.), or target select emerging countries, strategies, or sectors.
ETF’s portfolios are:
Faster
Cheaper
Transparent
More liquid
Flexible