As a reminder of why we like ETFs so much, consider the following positives. Here are our top five reasons why you should invest using ETFs:
- Cost. Investors know that ETFs are cheap. The average cost is an expense ratio of just 0.33%, which is well below the average cost of a mutual fund. Over the course of your lifetime you will save thousands of dollars in management fees by using ETFs vs. mutual funds.
- Ease. ETFs are really easy to invest in. It is easy to buy and easy to sell once you know how. Granted, there is a knowledge gap when it comes to buying and selling specific ETFs, but once we show you how you’ll find extremely easy to do.
- Simplicity. ETFs are a simple concept. They are index-based. Most investors understand the concept of an index fund. Index investing is both wildly successful and popular, and it’s also much more transparent than mutual fund investing.
- Choice. Today there are over 1500 ETF choices. Of course, choice can be a blessing and a cruse. However, with a little knowledge choice becomes a very big advantage.
- Access. Access is about more then choices, it’s about being able to invest in places that are not available to mutual fund investors. Some examples would be single country ETFs, or commodities ETFs.
If you have questions about how to use ETFs in your portfolio, email Doug personally with your questions at askdoug(at)dougfabian(dot)com.