During all of this moving around, the fees are stacking up and eating away at returns and maybe even principle. Over the long run, the financial service fee factor can do a lot of damage to security and retirement.
Exchange traded funds (ETFs) have been a boon to the investment world, as their fees are low and they supply diversification. Even better, the transparency that ETFs offer will give you access to what you own, when you own it, and at any time of the day. And since you’re passively tracking an index with most ETFs, you’re not trying to beat anything – you’re playing right along and you know what you own at all times.
Another benefit that ETFs yield are tax breaks. Capital gains taxes are not attached to ETFs, as the mutual fund incurs.
One of the best things to remember with the days of the star fund manager behind us, if you can’t beat the markets, join them yourself.