2006-06-14 09:10:09 · 4 answers · asked by questionqueen 1 in Business & Finance ➔ Investing
I like ETFs because some of them target very specific market sectors ignored by mutual funds. Also, there is no minimum purchase, and the fees are usually lower than an equivalent mutual fund.
2006-06-14 09:55:06 · answer #1 · answered by Yardbird 5 · 1⤊ 0⤋
They may have a place though I would not favor U S market based ETF's. But if you wish to invest in the markets of foreign countries, they are a good way to do so. Or perhaps in a particular market segment. They do have the advantage that the portfolio is not churned, if you are referring to index ETF's. There are also closed end funds that have advantages, one being that many of them trade below the NAV of the fund, way below.
2006-06-14 21:30:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes because they provide automatic diversification.
2006-06-14 16:12:54 · answer #3 · answered by Stephen D 2 · 0⤊ 0⤋
I favor them over plain stocks.
2006-06-14 18:20:55 · answer #4 · answered by gregory_dittman 7 · 0⤊ 0⤋