Investors are always looking to make a buck, or at the very least save one, thus exchange traded funds (ETFs) give them something to be happy about. ETFs are increasingly popular with investors, as they are known for low costs. ETFs follow indexes, which means there is no active, stock-picking manger to pay. Murray Coleman with The Wall Street Journal says, with more ETFs available and price wars between index funds, competition is heating up. This keeps expense ratios down. Providers and investors know the savings on expenses can help their performance. Executing trades efficiently behind the scenes is important because any costs saved in the transactions can trickle down to the investor.
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.