One of the great things about ETFs is that short-term traders and long-term investors can peacefully coexist, unlike mutual funds.
“ETFs democratize investing-retail investors come together with the biggest and smartest institutions in one product and are treated fairly and the same,” Joseph Linhares of BlackRock iShares said in a recent report. [Record Number of ETF Closure This Year]
ETFs have been able to track their benchmark closely. However, it’s important for investors to educate themselves on ETFs and how they work, reports John Gapper for the Financial Times. [Investors Using ETFs for Long Term Strategic Allocations]
The ETFs appeal to the retail investor, as they give them access to special niches in the market, access to several stocks at a decent price and trade with the ease of one transaction. Further, institutional investors like them because of their tradability, and use of shorting or hedging the market. [ETFs Supplement Long Term Investing Strategies]