Advisers Moving to ETF-only Model

In her article ETF-only model proves an attractive option, Financial Times reporter Rebecca Knight explores the trend of financial advisers abandoning mutual funds in favor of ETF-only portfolios.

Knight reports that advisers say they switched to ETFs after years of frustration with active fund managers who failed to out-perform their benchmarks, and the high expenses and costs linked to mutual funds.

To describe the difference between mutual funds and ETFs, one financial adviser uses this analogy:

“it’s the difference between listening to music on vinyl records, versus the way we listen to music today. It’s the same notes but a different vehicle, and ETFs as a vehicle are more tax efficient, more liquid, and generally cheaper.”

For a complete listing of ETFs, see the ETF Directory at ETF MarketPro.

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