USA Today reviews the reasons why exchange traded funds are becoming so popular.  Although we know the reasons, it’s always good to review why ETFs are attractive.

  • Low cost
  • Tax efficient
  • Tracks a market index
  • Good vehicle for speculation
  • Trades all day
  • Use of stop orders
  • Ability to sell short
  • If the ETF keeps its expenses down it could outperform the a mutual fund that tracks the same index
  • Can invest invest in international markets
  • Newer ETFs offer investment options in oil, gold, and silver

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.