ETFs have become popular tools for constructing long-term portfolios, with more and more investors utilizing these vehicles as tools to accumulate wealth over the long run. While the bulk of ETFs out there have appeal as securities that can potentially appreciate by a significant amount over an extended stretch, it’s important to remember that not all ETFs are designed to contribute meaningful long-term gains to portfolios; some are created with an emphasis on capital reservation and lowering overall volatility. Money market funds continue to be widely used, and while these funds probably won’t make you rich they can certainly serve as valuable defensive tools when uncertainty resurfaces in the market. This asset class offers investors a low-risk source of yield by diversifying their holdings in a variety of short-term securities, including commercial paper, Treasury bills, and certificates of deposit [see Bond ETFs For Every Objective]. There are also now a handful of [...] Click here to read the original article on ETFdb.com. Related Posts: ETFs For The Capital Preservationist Bond ETFs For Every Objective ETFs To Invest Like Ron Paul Bond ETF Drawbacks: Case For Active Management In Fixed Income Arena Complete List Of Active ETFs
ETFs have become popular tools for constructing long-term portfolios, with more and more investors utilizing these vehicles as tools to accumulate wealth over the long run. While the bulk of ETFs out there have appeal as securities that can potentially appreciate by a significant amount over an extended stretch, it’s important to remember that not all ETFs are designed to contribute meaningful long-term gains to portfolios; some are created with an emphasis on capital reservation and lowering overall volatility. Money market funds continue to be widely used, and while these funds probably won’t make you rich they can certainly serve as valuable defensive tools when uncertainty resurfaces in the market. This asset class offers investors a low-risk source of yield by diversifying their holdings in a variety of short-term securities, including commercial paper, Treasury bills, and certificates of deposit [see Bond ETFs For Every Objective]. There are also now a handful of [...]
Click here to read the original article on ETFdb.com.
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