FYI: Since the first exchange-traded fund (ETF) was introduced 25 years ago, they’ve surged in popularity among both individual and institutional investors. Today, these investment vehicles boast more than $3.5 trillion in assets under management in the U.S. alone and over $5 trillion worldwide.
ETFs are popular because they offer an affordable way to build a diversified portfolio. Compared to mutual funds, ETFs have lower expense ratios and are more tax efficient (they tend to create fewer taxable events). ETFs are also easy to buy and sell. They trade much like stocks on regulated exchanges, can be traded on margin, have no short-selling restrictions, and provide intraday trading opportunities and plenty of liquidity.
Interested in making ETFs a part of your portfolio? Here are Investopedia’s top five online brokers for ETF investing, listed in alphabetical order.
Regards,
Ted
https://www.investopedia.com/broker/best-brokers-etfs/