ETF Investors Are Embracing Low Cost Options…Or Are They?

By: ETFdb
When running down the benefits of constructing a portfolio with ETFs, most investors will touch on the potential for enhanced tax efficiency, intra-day liquidity, and transparency in holdings. But the biggest benefit, in the minds of those accustomed to using primarily actively-managed mutual funds, are the low expense ratios. Most passively-indexed ETFs charge fees equal to only a fraction of the expense ratios levied by actively-managed products, making them ideal securities for investors convinced by the boatloads of academic evidence suggesting that active management fails to add value over the long term. Some investors making the switch assume that any ETF they buy will be considerably cheaper than a comparable actively-managed mutual fund, and pat themselves on the back for lowering their overall expenses. But as more and more ETF investors are realizing, all ETFs are not created equal from an expense perspective, and the gap between many similar or [...] Click here to read the original article on ETFdb.com. Related Posts: Why The Cheapest ETFs Aren’t Always The Best Ten New Years’ Resolutions For ETF Investors Ten Commandments Of ETF Investing Five Critical Questions To Ask When Investing In ETFs Ten ETF Trends For The Next Ten Years
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