Since ETFs are traded like stocks, commission fees add up if you are making regular deposits. Still, there are a number of commission-free ETF options available. [Six Popular Commission-Free ETF Trading Platforms]
Due to the readily tradeable nature of ETFs, investors may be tempted to day-trade the investment. Every investor, though, should implement some kind of self discipline. For example, we follow the 200-day exponential moving average as an indicator for when it’s time to go in and when it’s time to sell.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.