When the Wall Street Journal takes notice of something, you know it's important. In fact, they have full-page ads for ETFs. So, do you want to know why exchange traded funds are so popular and how they can fit into your investment plan?
Exchange Traded Funds, or ETFs, aren't technically mutual funds, but they have some of the same benefits and trade like stocks. They should definitely be a part of your investment plan because they are the best way to invest since mutual funds came along. This is why exchange traded funds are so popular.
This group of securities is traded on the exchange. It is a hot commodity because it has some characteristics of stocks and some characteristics of index mutual funds. This is just one reason why exchange traded funds are popular. Exchange traded funds have a lot of benefits.
They are more flexible than traditional mutual funds because they are traded on the stock market. They can be bought and sold like any other stock at any time during the trading day. Mutual funds don't let you trade in that way. Exchange traded funds are popular because we've been looking for something new and interesting for a while.
You can even borrow money to buy exchange traded funds, which you can't do with mutual funds. And because of SEC rules, ETFs are better than mutual funds when it comes to taxes. Exchange-traded funds are popular for many reasons, and they can compete well with even the cheapest mutual fund on the market.
Now, nothing is perfect, and exchange traded funds are no exception. There are a few problems with these funds. They have the same kinds of commissions as stocks, and unless you have a lot of money or work for a big company, you will need a broker to buy them. Do your homework.
You can see why exchange traded funds are popular and why they will probably stay popular for a long time. It's not often that something this good comes along.
Now that you know all of this, you can see why exchange traded funds are so popular and why they are a great choice. The only question left is whether or not you should invest in exchange traded funds and whether or not you fully understand why they are so popular.
All rights reserved. Copyright (c) 2007 Joel Teo. (You may publish this whole article as long as you include the following author's name and only live links.)
