The answer is a big resounding yes. Putting an exchange-traded fund on your portfolio is one of the best things you" />
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Is ETF good for your Portfolio?

The answer is a big resounding yes. Putting an exchange-traded fund on your portfolio is one of the best things you can do to diversify your investments. But what makes it better? Why are exchange-traded funds good news for you? Let’s find out.

Individual Investing

Exchange-traded funds are marketable securities that keeps focus on a basket of assets or on an index, or commodities, or bonds. It offers higher liquidity with lower fees compared to mutual funds. Individual investors will find ETFs more beneficial for them because its capacity to hold long-term bets in broad asset classes. This means that individuals can cut down on losses accumulated because of individual investing.

Cheap

ETFs are very affordable with less the fees. And with the lowered fees, the more money goes to you. To give you an idea, see the expense ratio for SPY. It’s 0.0945. This amounts to a price of less than $10 for $10,000 invested. Of course, not all ETFs are priced the same way but it is close.

Diversification

Another good point is that ETFs offer great diversification. Diversifying your investments into an assorted portfolio means that no matter the market conditions, you have a better chance of profiting because you have a lot of investments that will make up for losses. ETFs give you access to entire markets and give you great exposure to hundreds of stocks. If that isn’t one of the best diversification offering then I don’t know what is.

Getting an ETF for your portfolio is smart. Research what suits you and invest away!

Created by : Samantha
Published : 13 Oct 2015

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