April 22nd, 2008
Benefits Of Exchange Traded Funds
The word ‘funds’ in the phrase Exchange Traded Funds or ETFs, quite often confuses some investors who tend to identify them with mutual funds. More so, when people think that both the ETFs and the mutual funds spread the risk by the diversification of investments.
Confusion apart, the fact remains, that most people do not like the management and the investment policies and the high operating expenses associated with the actively managed mutual funds. The performance of mutual funds also does not offer the level of transparency that the investors would expect.