Should you invest in exchange traded funds (ETFs)?

Should you invest in exchange traded funds (ETFs)?


There are nearly 1,200 ETFs available. Should you invest in them?

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Please refer to our transcription below if it is easier and/or more convenient for you:

Since the launch of the first exchange-traded fund in 1993, the industry has grown to over $1.3 trillion with nearly 1,200 choices available and the exchange-traded fund has characteristics of both stocks and index mutual funds.

Individuals can buy or sell ETF shares daily just like stocks and they can invest in a pool of securities much like a mutual fund. If you are considering an ETF, here are a couple of questions to ask.

    Given the size and nature of my portfolio, would ETFs be right for me?

  • There are many factors involved, but if you have a long-term investment time horizon, an ETF might be appropriate.
    Are there different tax treatment depending on the investment focus?

  • ETFs are structured to track certain sectors and they follow the tax laws of that sector, so each EFT should be examined for its tax treatment.

Exchange-traded funds are just one investment choice for a diversified portfolio.

Call today and let’s talk about whether an ETF is right for you.