Two Disclosed And One Hidden Cost Of ETFs
Exchange-traded funds (ETFs) are a cost-effective way to build a well-diversified portfolio, but don’t just assume that all are inexpensive and diversified. Warren Buffet has been known to warn novice investors with a poker analogy. Buffett shares that if you don’t know who the patsy is after 30 minutes of playing, you’re the patsy. Those who fail to do their homework will pay the price.
ETF market share has doubled in the last five years during the same period that mutual fund market share has been relatively stagnant. Although ETFs are generally cheaper and more tax-efficient than mutual funds, it’s …
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