I have been talking to ETF investors for more than a decade, and when I mention the numerous benefits of the structure, I often hear “I don’t need intraday liquidity, so that does not benefit me.” Well, I am here to tell you that whether or not you utilize intraday liquidity, it benefits all ETF investors.
Exchange-traded funds (ETFs) have seen immense growth over the past decade. While there are a multitude of benefits of ETFs for investors, we continue to see questions around ETF trading. Let’s discuss the do’s and the don’ts of how to best trade an ETF
One of the most common questions and discussion points we encounter is this: “What are the key differences between ETFs and mutual funds?” Both are investment vehicles designed to give the investor exposure to a basket of securities, but there are important distinctions between the two structures in terms of transparency, trading and tax efficiency.