ETFs offer some massive advantages over mutual funds. I wonder why anyone would want to invest in a mutual fund ever again.
Here are some stats:
As of June 30, there are 2,280 ETFs listed in the U.S.
ETFs represent $5.64 trillion globally.
The average daily value of U.S. ETF transactions alone is $87.9 billion.
52% of U.S. investors intended to invest in ETFs. 9 in 10 financial advisors also expected to invest in ETFs for client portfolios.
Here are the 7 advantages that make ETFs a no-brainer:
1. ETFs have no investment minimums, front-end loads or early redemption fees.
2. ETFs offer real-time tracking, while Mutual funds price only once each trading day.
3. ETFs offer real-time trading while Mutual funds are bought and sold only after the market closes.
4. ETFs are transparent while Mutual funds disclose their holdings once per quarter.
5. ETFs are more tax-efficient.
6. ETFs are much, much cheaper than Mutual funds.
7. ETF are much more diverse and remarkable more creative than Mutual funds.
There are ETFs for every asset class, theme. Whatever the asset class, investment theme, direction of the market, there’s always an ETF in which you can invest. With ETFs you can build a portfolio to fit your specific objectives. You just have to use them to your best benefit.
Sven Franssen