If you currently have investments in mutual funds and want more control over your money without having to get into the tedious analysis of individual stocks or bonds, ETFs may be right for you. ETFs have been growing in popularity and numbers over the past few years due largely to their unique advantages over mutual funds and diversification opportunities they present.
What is an ETF?
An ETF, or Exchange Traded Fund, is a security that tracks an index, commodity, or a basket of assets, like an index fund but trades like a stock on an exchange. ETFs can provide the diversification of a mutual fund and the liquidity of a stock. Most ETFs have lower expense ratios than the average mutual fund, but you will have to pay a trade commission to a broker when you buy and sell them. With over 1000 ETFs to choose from the investment opportunities are diverse. Continue Reading…