Generally, ETF's have fewer managers, lower costs and cover as many sectors as mutual funds.
iShares, SPDR and ProShares are some of the more popular families of funds, each offering a variety of categories.
Here are a few basic factors to consider when investing in ETF's:
- Liquidity is important, high trading volume is desireable.
- Low expense ratio.
- The family of funds should be run by a reputable firm.
In choosing an individual ETF, think of it as a stock and opt for the sector that you expect will do well in the future.
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