Many investors may be familiar with how mutual funds work and how they fit into an investment portfolio. However, as more come know about the cheap costs, efficiency and easy of use of the ETF investment vehicle, investors are also going to have questions about how these products work and how to best incorporate these funds into an investment portfolio.

Consequently, more money managers and ETF providers will have to take an active approach in educating investors and advisors about the new products and the subtle differences in each of their respective offerings.

One of the first Goldman Sachs ETFs is the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSEarca: GSLC). As a multi-factor ETF, part of GSLC’s objective is to provide investors with a broad basket of equities with the potential to top traditional benchmarks, such as the S&P 500, while removing the need to time individual investment factors.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.

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