What’s the Advantage of Investing Using ETFs?

Reduced costs

This is one of the main reasons why many people choose ETFs over mutual funds. There are a number of fees associated with traditional mutual funds, the most notable being load fees and 12b-1 fees.

Load fees are used to compensate brokers and other intermediaries involved in the sales process. Separately, 12b-1 fees are used to cover the advertising and marketing costs of the fund.

ETFs, on the other hand, do not have load fees or 12b-1 fees.

Moreover, most mutual funds are actively managed and can have significant operating expenses, the cost of which is usually passed on to the investors. ETFs, on the contrary, are passively managed and their operating expenses are considerably lower.

This is why, on average, an ETF is much cheaper than a mutual fund.

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
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Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
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