ETFs promote trading, yes, but you can trade mutual funds, too. We’re all grown-ups, of course, and if investors are going to shoot themselves in the foot, ETFs are not going to be the bullet. There are all kinds of bullets out there, including stocks, mutual funds, futures, currencies and more. The point is, ETFs aren’t the only security that can be misused. [January ETF Numbers.]
Right now, ETFs represent about 7% of mutual fund assets, but we sure wouldn’t mind seeing that number grow.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.