How Safe is ETF Investing?
February 5, 2020
Since their introduction in the early 1990s, Exchange Traded Funds (“ETFs”) have gained considerable traction with investors. Offering low fees and an easy way to diversify, ETFs can be a great way to get exposure to just about any corner of the world’s various capital markets. Unlike open-ended mutual funds that are priced just once a day, ETFs trade like stocks with prices that are updated throughout the day. In addition, the structure of ETFs makes them more tax-efficient than their mutual fund counterparts. Despite these positive characteristics, like all investment vehicles, ETFs do not come without risks.