ETFs are appealing to investors for various reasons. As recent price wars rage on, there are many other factors that make these funds desirable to investors besides low cost.
“Exchange traded funds have gained immense popularity in the recent past, given their holistic investment approach and tax efficiency, coupled with flexibility and ease of investing. ETFs can be viewed as the ultimate asset allocation instrument providing investors a ready made portfolio of stocks or fixed income securities or both,” Eric Dutram wrote for Zack’s. [The Shifting ETF Landscape]
A broad group of investors are finding ETFs appealing as they study their current portfolios of mutual funds and single stocks, Christian Magoon wrote on Nasdaq.com.
The access that ETFs give retail investors is one reason that these tools are appreciated by investors. The easy investment to niche corners of the market and sectors is a trait that ETFs have, at a reasonable cost. Plus, asset classes, bonds, commodities, futures contracts, currencies and grantor trusts can all be accessed with a targeted ETF.