Whare are the advantages of ETFs?
Because ETFs are traded throughout the day on the open market, investors don’t have to go to the mutual fund company to buy shares, and mutual fund companies don’t have to spend as much time on servicing the funds. This provides the dual advantage of greater liquidity and lower costs for investors. In addition, because ETFs track indices, they have greater transparency than traditional mutual funds, whose holdings are not publicized until required by law often months after transactions have been made. Finally, ETFs target entire asset classes, which makes creating a low-cost, diversified portfolio for a variety of market-beating strategies simpler than ever.
