WHAT IS AN ETF? THE ULTIMATE GUIDE FOR BEGINNERS

This article originally appeared on: https://www.roundhillinvestments.com/blog/what-is-an-etf

This is, by far, one of the most comprehensive articles I’ve read about what exactly an ETF is. Please enjoy.

WHAT IS AN ETF? THE ULTIMATE GUIDE FOR BEGINNERS

by Will Hershey / July 22, 2019

Over the past decade, ETFs have surged in popularity. In the U.S. alone, there are now more than 2,200 ETFs, with combined assets under management of $4 trillion (that’s trillion, with a T). In a 2019 survey by Charles Schwab, 79% of investors said that ETFs were their preferred investment vehicle and 63% responded that they saw ETFs as their primary investment vehicle moving forward. For younger investors, the appetite and interest in ETFs is even more pronounced. A remarkable 90% of millennial respondents, aged 25 to 38, reported ETFs as their investment vehicle of choice.

Continue reading at: https://www.roundhillinvestments.com/blog/what-is-an-etf

ETF Transparency And Liquidity Are Welcome In Stressed Markets

Summary

  • The shift from mutual funds to ETFs is a secular trend.
  • Claims that ETFs won’t work in down markets are loaded and obtuse.
  • Active asset allocation – using direct securities, funds or ETFs – is key to managing risk.
  • Transparency and liquidity of ETFs makes them a useful tool for implementing asset allocation decisions.

Continue reading this article at Seeking Alpha right here:  https://seekingalpha.com/article/4232900-etf-transparency-liquidity-welcome-stressed-markets

 

 

Capital Flows to Where it is Treated Best: ETFs Have Treated Investors Most Excellently (repost)

“Capital flows to where it is treated best.” Many of you have probably heard this quote more than once, and should easily understand it, even if you don’t embrace it as a universal truth. I like this quote because it just makes good common sense. The quote is normally used in the context of macro-economics, but I believe it is equally valid in the realm of actively managed mutual funds, index funds and ETFs.

Continue reading “Capital Flows to Where it is Treated Best: ETFs Have Treated Investors Most Excellently (repost)”

Swedroe: The Only Reliable Prediction

Another great article from Mr. Swedroe right here at ETF.com:

Swedroe: The Only Reliable Prediction

Fortune teller

New favorite Swedroe quote: “There’s one forecast I know I can make with the same certainty I have about the sun rising in the east. I know—for certain—that, at the end of each year, active managers will come up with an excuse for their failure to outperform index funds.”