Exchange-traded funds (ETFs), low-cost funds that typically track an entire index, sector or asset class, were introduced in 1993 and have become enormously popular in the past couple of decades.
The total amount of investments in ETFs is estimated to be over $1 trillion.
ETFs offer a variety of benefits and can be a good addition to your investment portfolio. There is an extremely wide array of ETFs available and you can pick and choose the ones which meet your criteria in terms of operating costs, risk tolerance, and the rate of return.
If you are a beginner who is unfamiliar with ETFs, it might be a prudent idea to consult an investment advisor.
So what are the advantages of investing using ETFs? Let’s take a look.