FYI: Over the past decade, exchange-traded funds (ETFs) have become popular among
investors for their use in building investment portfolios. Although sometimes portrayed
as unique instruments, ETFs are overwhelmingly similar to mutual funds, from both a
regulatory and a structural standpoint.
■ Investors have also used ETFs in a manner similar to the way they frequently use mutual
funds, namely to create low-cost, broadly diversified investment portfolios, especially when
implementing index-based strategies.
■ ETFs provide important benefits stemming from the method by which investors transact in
fund shares. The secondary market trading of ETFs serves as an additional source of intraday
liquidity for market participants while intraday market prices reflect valuable information
about market conditions.
Regards,
Ted
https://personal.vanguard.com/pdf/ISGETFC.pdf
