Comments on: Should You Invest with Exchange Traded Funds?

By: Benefits Of Exchange Trade Fund Investment

Benefits Of Exchange Trade Fund Investment — Thu, 01 Jan 1970 00:00:00 +0000

[...] can do it later once I have seen questionnaires meant to gauge how much of the fund managers are only telling your gains and precious metals funds has [...]

By: Etf Funds – Which Etf Is Right For You? | ETF Trading now

Etf Funds – Which Etf Is Right For You? | ETF Trading now — Thu, 01 Jan 1970 00:00:00 +0000

[...] day. This allow you to buy buy buy buy. And I can fault that at this point. There are possibilities for fund manager are showing at a 20% annual hidden expenses over the park. It entails devotion market experts neophytes may be [...]

By: robert

robert — Thu, 01 Jan 1970 00:00:00 +0000

Most ETFs are indexed. Example: SPY mirrors the S&P 500 and AGG mirrors the Barclays aggregate bond index.
A big advantage in my opinion is that you know what price you are paying or getting as soon as you make the transaction. In fact, you can put in a limit order etc.
Forget about having to wait until the end of the day to see what the price is and forget about expenses like 12-b and redemption charges and all that garbage that just confuses people and subtracts from the bottom line.
Now ETFs make it possible, finally, for the small investor to trade like the the institutional investors.

By: jb

jb — Thu, 01 Jan 1970 00:00:00 +0000

Great rundown of the specifics of ETFs!
Two factors that I�d like to point out with regard to ETFs that *can* be considered negatives that you need to be aware of:
1) no dividend reinvestment � unlike your mutual fund, an ETF does not have the mechanisms in place to allow you to automatically reinvest the dividends in the fund. This can be dealt with by periodically investing the cash dividend into the fund (perhaps once it has reached a level where the trade commission is a minimal percentage). For most folks this is no big deal, but if you�re trying to maintain efficiency in your investments it�s an extra step and an extra cost that you have to enact manually.
2) NOT ALL ETFs ARE INDEXES � this is important to note. While most ETFs are connected to an index, some of the newer ones are not indexed, but are a sort of semi-managed fund. It doesn�t take long to figure this out if you look at the underlying fund information and see that it doesn�t reference an index. Costs for these ETFs are usually much higher as well. Caveat emptor!

By: kt- lifedividend

kt- lifedividend — Thu, 01 Jan 1970 00:00:00 +0000

i would invest in them if anything for the advantages that you have stated above like long term low cost investment. But seeing as how they share this advantage with index funds, i would mix them up. But i prefer index funds to ETFs because i can basically invest in an index fund and forget about them for a majority of the time and in some cases i would beat the pro money managers at their game because money managers rarely beat the market. The fact that index funds have very little human interference makes them hugely attractive to me