- Basket of assets: An ETF is a universe of assets which includes stocks, bonds, commodities, currencies and create a basket of them to provide diversification to investors in their portfolio.
- Trading flexibility: Buyers and sellers trade ETFs throughout the day on exchanges similar to stock. Its pricing is continuous during the trading hours.
- Portfolio diversification: Operating costs in the exchange-traded funds is lower compared to other mutual funds. It also has lower expenses in the area of monthly statements, notifications, and transfers. Traditional open-end mutual fund companies are required to send statements and reports to shareholders on a regular basis.
Find more questions on this topic
