
An ETF usually tracks a market index, commodity, or economic sector. The most common ETFs track indexes like the S&P 500, but funds can also be purchased that invest only in gold, or companies based in Shanghai. ETFs are not usually actively managed so their expense ratios are generally lower than that of mutual funds. However, an investor must pay the usual commissions associated with buying and selling individual stocks in order to invest in these securities. Thus, ETFs are most appropriate for long-term investing.
ETFs are becoming more common in the financial planning profession. Speak to a certified financial planner (CFP) who has a fiduciary obligation to do what is in their clients' best interests to learn whether ETFs are an appropriate investment for your portfolio.
No comments:
Post a Comment