Exchange Traded Funds make sense for most investors, but up until now have been cost prohibitive for smaller investors who try to build wealth monthly. That’s because each month when small investors put away $100 into an ETF, there is a commission charged for the purchase. With commissions ranging from $8 to $25 that can add up.
ShareBuilder Securities Corp., an online brokerage, has made an effort to help these investors. They allow automatic investments in ETFs for $4 a transaction. Other firms are looking into similar solutions. And ETFs are showing up as an option in some 401k accounts.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.