5. Costs – What is the total cost of ownership?
Expense ratios are important, however all implicit costs including trading and market impact, should be factored in. Your financial advisor can help you estimate the impact of your trade before it’s placed.
iShares now offers 20 low-cost Core ETFs that are a great starting point to consider as core holdings for your portfolio. In my next Blog post, I will explore a number of sample core portfolios to demonstrate building an investment strategy for the long haul.
Daniel Gamba, CFA, is Managing Director and head of BlackRock’s iShares Americas Institutional Business. He is also a member of BlackRock’s Global Operating Committee. He is a regular contributor to The Blog and you can read more of his posts here.
There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.